BEIJING — Secretary of State Hillary Rodham Clinton on Sunday entreated the Chinese to continue their economic support for the United States, saying, "We are truly going to rise and fall together."
Closing her maiden overseas trip as chief diplomat, Clinton urged Beijing to keep buying U.S. government bonds despite their declining value. And she defended the Obama administration's economic stimulus spending package, saying the added debt load, though "drastic," would benefit China.
Her plea was a reminder of the shifting balance of power between the longtime Western superpower and the Asian giant that finances its consumer and government spending with $1.9 trillion in foreign currency reserves.
"We are in the same boat," she said. "Thankfully, we are rowing in the same direction, toward landfall."
In an interview with Yang Lin of Shanghai-based Dragon TV, Clinton said the Chinese understand that the United States "has to take some drastic measures" with the stimulus package to restore American spending, which in turn will help revive Chinese exports.
By continuing to buy U.S. Treasury bonds, "the Chinese are recognizing our interconnections," she said. She said that the purchases were a "very smart decision" because the bonds are safe and stable.
During her presidential campaign, Clinton had contended that reliance on Chinese bond purchases was making the U.S. dangerously dependent. She said China's position as America's "banker" was eroding the United States' leverage with Beijing.
But now, as a senior U.S. official, Clinton was recognizing a difficult reality, and pleading with China to continue the status quo.
On Saturday, when the subject of Chinese bond purchases came up during a joint news conference with Clinton, Chinese Foreign Minister Yang Jiechi stopped short of promising to continue the purchases. He said instead, as Chinese officials have before, that his government would continue to buy the bonds if they continued to offer the best combination of value, low risk and liquidity.
Clinton made Asia the destination of her weeklong trip because of her interest in developing what she said she hoped would be a more active partnership on environmental, security and economic issues. The Chinese agreed in meetings Saturday to new high-level conversations, although important details remain to be sorted out.
