Traders of the Caribbean

[Dredinvestments]

Clinton: Chinese reassured on US financial health


On Saturday August 8, 2009, 4:08 pm EDT

WASHINGTON (AP) -- Secretary of State Hillary Rodham Clinton says she thinks the Chinese "are breathing a little easier" about the health of the U.S. financial system.

U.S. and Chinese financial and diplomatic officials held two days of high-level talks in Washington last month.

The Chinese are the world's largest holder of U.S. Treasury securities. They have expressed concerns about the safety of their investments, given the rising U.S. budget deficit.

Clinton says she thinks "it is fair to say that they are somewhat reassured" after the recent talks. She says the U.S. economy is on the mend and President Barack Obama is committed to getting a handle on the deficit.

Clinton says the Chinese have an export-driven economic approach, but need to stimulate more demand for goods by Chinese consumers.

Clinton made the comments in an interview with CNN's Fareed Zakaria that is set to air Sunday