From the Wall Street Journal:
In a biting commentary, [Xinhua] urged the international community to improve supervision over the U.S. dollar and said the world may need “a new, stable and secured global reserve currency to avert a catastrophe caused by any single country.”
“China, the largest creditor of the world’s sole superpower, has every right now to demand the United States to address its structural debt problems and ensure the safety of China’s dollar assets,”
The remarks came after the Standard & Poor’s Friday removed the U.S. government from the list of risk-free borrowers, citing concern about the rising burden of long-term federal debt.
China, with over $1 trillion invested in U.S. Treasurys, is among those that would be most immediately affected by any U.S. default or downgrade.