AFP
China is worried about US inflation and may dump the dollar
Senior Chinese leaders have privately voiced fear over the soaring US budget deficit and are increasingly looking to diversify from the dollar,a Republican congressman said.
“We heard across the board —in private —substantial,continuing and rising concern,”Representative Mark Kirk said after a trip to China that included talks with government officials and central bank chief Zhou Xiaochuan.
“It’s clear that China would like to diversify from its dollar investments,”the lawmaker said at the Center for Strategic and International Studies,a Washington think-tank.
Kirk’s assessment differed with that of Treasury Secretary Timothy Geithner,who said last week on a separate visit that Chinese leaders had expressed “justifiable confidence”on the future of the recession-hit US economy.