China has always been a player in the American debt crisis for years vis a vis incessant American borrowing, and even they are taking notice and weighing on the ongoing fiasco. In a statement on the Chinese State Administration of Foreign Exchange’s Website, the Chinese government put in their two cents on the matter:
“We hope the U.S. government will take responsible policies and measures to boost global financial market confidence and respect and protect the interests and investors.”
What this means in the short or the long run is hard to say, specifically, but it is no small secret that America is going to have to pay back the Chinese at some point. Even more pointedly, the Chinese government:
“[...]noticed the opinion expressed by S&P and other rating companies regarding the credibility rating of the U.S. sovereign debt.”
Not only is this a somewhat embarrassing talking to, it is a reminder that this debt crisis is not domestically contained. That is, there are repercussions for foreign affairs if we are to default and see our credit rating taking a hit after a Moody’s evaluation. An American default would certainly send shock waves throughout the global economy.
Contains information from CNN.