Yesterday, while delivering a speech at Sichuan University, Biden stated: "China holds 8% of U.S. debt (U.S. citizens hold 85%) and 1% of U.S. Treasury assets. The United States has never defaulted on its debt and never will."
Biden acknowledged that in the United States, due to disagreements between the Republican Party, the Democratic Party, and the Tea Party faction, proposals regarding the U.S. debt ceiling have faced numerous setbacks, but he remains confident that U.S. debt is secure.
"U.S. citizens hold 85% of U.S. debt. If any U.S. politician were to cause a default, the first to be disappointed would be the American people," Biden stated. "No U.S. politician wants to see such an outcome."
"Chinese investors should understand that if we cannot guarantee the interests of Chinese investors, we would be disappointing tens of millions of American investors. We have measures in place; U.S. Treasury bonds have never defaulted, and they will not default in the future."
In addition, Gary Locke, the first Chinese-American Ambassador to China, also revealed: On August 10, the winning interest rate for the U.S. Treasury's $24 billion ten-year bond issue hit a record low of 2.14%. However, this did not dampen public expectations, and the bonds were quickly fully subscribed.
