China urged the United States on Thursday June 10 not to be suspicious about its U.S. Treasury holdings, after the Senate voted to require regular reports on security risks posed by debt held by China and other nations.
China is the world's largest holder of U.S. Treasuries, with $895.2 billion, and added to its stockpile in March for the first time in seven months.
Chinese officials, including Premier Wen Jiabao, last year prodded the Obama administration to avoid pursuing fiscal policies that could erode the value of China's holdings of U.S. debt.
Sino-U.S. ties have been strained of late, especially over the value of the Chinese currency, which many U.S. politicians believe to be undervalued.
U.S. Senator Charles Schumer said on Wednesday that he and other colleagues would push for a vote in the next two weeks on legislation that would allow the Commerce Department to use anti-dumping and countervailing duty laws against China or any other country with a fundamentally misaligned exchange rate. (Source: Ben Blanchard and Huang Yan; Reuters, Jun 10., 2010).