US is safe for investment, says new China ambassador

Gary Locke, who was sworn in earlier this month as the new US ambassador to China, reassured Chinese viewers that the US government is “committed to getting our fiscal house in order” in a televised interview on Sunday, Bloomberg reported. The comments made by Locke, who arrived August 12 in Beijing, come after Standard & Poor’s (part of McGraw-Hill: MHP.NYSE) decision to downgrade the US’ AAA rating – a move which prompted a harsh reaction from Chinese commentators. “Many outside the US believe the credit rating cut is an overdue bill that America has to pay for its own debt addiction and the short-sighted political wrangling in Washington,” said an editorial published by state media outlet Xinhua on August 6. China held US$1.16 trillion in US Treasury securities at the end of May, more than any other country. Locke, the former commerce secretary for US President Barack Obama, pointed out that investors have been undeterred by Standard & Poor’s credit downgrade, and more people have been buying US Treasuries. “It is a clear indication that investment in the US is safe and secure,” Locke said.