Biden Denies The US Economic Decline &Nbsp, Will Safeguard China's Foreign Exchange Reserve Security.

August 17, 2011, vice president of the United States Biden With a smile, he appeared in Beijing, China. The July visit was delayed for nearly a month because of the debt crisis in the United States, and the economic difficulties of the United States have become the background of this visit.

China has nearly US $3 trillion and 200 billion in foreign exchange reserves and has more than US $1 trillion and 100 billion in US Treasury bonds. It is the largest creditor country in the United States, and the US economic outlook is closely related to China's interests. At the same time, recent changes in the balance of economic power between China and the United States have triggered many discussions on the strategic relocation of the two countries on both sides of the Pacific.

US Vice President Biden arrived in Beijing to begin an official visit to China. The source: Oriental Broadband column: Vice President Biden accepted the relevant questions on the eve of Tencent's video visit to China. Finance Journalist's written interview. He said that the fundamental strengths of the US economy still exist, and those who believe that the United States is in decline is wrong.

Finance and Economics: the US economy is still weak and the unemployment rate is high. But the debt ceiling agreement restricts the federal government's spending, and expanding spending is the main way for the government to stimulate the economy in the past two years. What are the other measures that the federal government is considering to revive the economy under the circumstances of limited expenditure?

Biden: since President Obama and I took the oath of office in January 2009, we have been focusing on employment and the economy. In that month, the United States lost more than 800 thousand jobs. Our priority is to stabilize the economy, avoid the second "Great Depression" and promote the growth of employment in the private sector. With the help of the economic stimulus policy, we succeeded in achieving the previous point. We believe that the recent agreement between Democrats and Republicans on raising the US debt ceiling and deficit reduction will help maintain a responsible financial line in the United States.

Although we are proud of what we have achieved, we still have a long way to go in the future. That is why we continue to focus on strengthening the core foundation of the US economy and investing in education, innovation and infrastructure. These investments will help the American people develop the skills and means needed to maintain global competitiveness in today's interconnected world, and in the long run, help to ensure that the United States continues to be the driving force of global economic growth.

In the next few months, President Obama and I will urge Congress to issue a sharp cut. deficit The bill also takes more measures to stimulate employment and consolidate the recovery of the US economy. The government will also endeavour to modernize the US patent system, develop new manufacturing technologies and adopt trade agreements aimed at promoting global integration.

Of course, these economic challenges are not unique to the United States - they are global challenges. As we discussed at the G20 summit, promoting sustainable and balanced global growth is not just the responsibility of the United States. All major economies can make important contributions. China has shown that one of its important goals in the next five years is to boost domestic demand and consumption. This will not only help Chinese families to improve their living standards, but will also make an invaluable contribution to the world economy.

Finance and Economics: now there is a widely held view that the US government will solve the debt problem through inflation or the depreciation of the US dollar. Given that the Fed's monetary policy is not affected by the debt ceiling agreement, will there be third quantitative easing (QE3)? What measures will the US government take to protect China's nearly $3 trillion and 200 billion? foreign exchange Security of reserves?

Biden: I want to clarify this point - the Obama administration is firmly committed to maintaining the foundation of the US economy and ensuring the security, discounting and value of US government bonds to all its investors. First of all, it is a firm commitment to American citizens who are the holders of most of the bonds of the US government, and this is also a firm commitment to all foreign investors, including China.

The fundamental strength of the US economy is partly attributable to the fact that we have an independent federal reserve committee that does not have to obey the executive branch directive. The Federal Reserve has the mission of maintaining maximum employment rate and stabilizing prices. It has a high reputation as an institution and a mechanism against inflation.

Finance and Economics: some people believe that in the long run, the economic strength of the United States will continue to decline. How do you comment on this? Why? For decades, the United States has been seen as a responsible leader and first engine of the global economy. But the debt crisis and quantitative easing policy have aroused many complaints from other countries. How should the United States properly handle its responsibility for the world economy?

Biden: I have been engaged in public service for a long time. Actually, it has been 38 years. During this period, many people have said that, as some people are saying now, the United States is on the decline. They were wrong at that time, and they are wrong now.

As president Obama recently reminded the American people, "despite the challenges we face, we continue to have the best universities, the most productive workers, the most innovative companies, and the most courageous entrepreneurs in the world. What is unique is that we are not only always capable of this, but also have the will to act - to determine our future will; our democratic system calls for a rational way to remove our differences and make progress, not only for our generation, but also for the next generation. {page_break}

Frankly speaking, it is United States of America's many strengths that have enabled it to withstand the economic and financial challenges of the past years - from the strengths of the system to flexibility, to innovation, and to its ability to provide opportunities for the American people and the people who pursue their dreams in the United States.

The history of our country goes without saying that the United States has been and continues to be the leading force of responsible global economy for a long time. In the effort to eliminate trade barriers and create a global trade and investment environment after World War II, we are at the forefront. This effort has brought unprecedented growth in the global economy, and many countries, including China, have prospered. We are continuing to work towards an agreement to promote openness in trade and investment.

It is under the leadership of the United States and aimed at the 2008 financial crisis that G20 has become the main global economic and financial mechanism. We have successfully promoted the reform of the international financial system, enhanced its management capabilities, and enhanced the representativeness of China's dynamic emerging markets. We will continue to work together with our global partners to ensure economic recovery, to ensure a stronger and more stable global financial system and to ensure strong, balanced and sustained global growth.

We also understand that the road to overcoming our economic challenges begins at home. The unrestrained behavior that led to the financial crisis and recession is not formed overnight, nor can it be solved overnight. We need time to solve the problems in the real estate industry, help American families rebuild their assets, and make every American who wants to work return to their posts. But the fundamental advantage of the US economy is its ability to lift, agility, innovate and grow.

Finance and Economics: China insists that the freedom of the South China Sea and the safety of international routes are not a problem. Why does the Obama administration continue to call for the freedom of navigation in the region? What role does the United States want to play in the controversy surrounding the South China Sea?

Biden: as a Pacific country, the United States has a lasting national interest in freedom of navigation, maintaining peace and stability and respect for international law in the South China Sea. We oppose any party who asks for the demand for force to threaten or use force; we support all the claimants to resolve disputes without coercion through diplomatic channels of cooperation.

We commend ASEAN and China for their recent announcement that they agreed to implement the relevant pointers, promote confidence building measures and joint projects in the South China Sea. This is an important first step towards reaching a code of conduct, as well as the progress achieved through dialogue and diplomacy. We encourage all parties concerned to accelerate their efforts to achieve a comprehensive code of conduct in the South China Sea. We call on all parties to clarify their rights in the South China Sea in accordance with customary international law, including the United Nations Convention on the law of the sea.

Finance and Economics: over the years, the balance of economic power between China and the United States has been developing in favor of China. How do you view this change? Is it time for China and the United States to adjust strategic relations? From the perspective of Washington, how will China US relations develop in the next few decades?

Biden: in the past 30 years of "reform and opening up", China's economy has increased rapidly. The Chinese people, relying on their hard work, perseverance and vision, have lifted millions of people out of poverty and are now contributing to the prosperity of the world economy. They have reasons to be very proud of this.

It is also clear that China's economic growth is possible because of an open and dynamic world economy and the long-term strength of the United States to help create a peaceful and stable environment in the Asia Pacific region. As China's economy continues to grow, China will have more interest in the global system and will have more responsibilities to help maintain the system.

Our two countries, the two largest economies in the world today, are linked by expanding trade and investment relations. In many areas, we can cooperate. But in other areas, there is competition between us. I firmly believe that the ability of the American people will be improved in the sincere competition with the people who are comparable to their abilities. The Chinese people are such people. I welcome the healthy and fair competition between the two countries, because I believe that this will stimulate our common innovation and we can all benefit from it.

I don't think of it as a zero sum game you lost. We each have a stake in each other's success. As I have said many times before, a rising China is a positive development. The continued prosperity of China and other Asia Pacific regions is crucial to the economic future of the United States and other parts of the world. We hope to engage with the region through healthy and fair competition in an open, free, transparent and fair market.