LATEST NEWS
 Top Stories
 U.S.
 World
 Business
 Markets
 Technology
 Sports
 Entertainment
 Health
 Science
 Politics
 Offbeat
 Weather
 Raw News
  ESPAÑOL
 Generales
 Financieras
 Deportivas
 Espectáculos
 NEWS SEARCH
 
 Archive Search
 WEB SPECIALS
 Multimedia Gallery
 AP Video Network
 Today in History
 PhotoWeek
 SportsWeek
 U.S. Census
 Database
 Corrections
Aug 21, 9:29 AM EDT

China's US assets 'safe,' Biden tells students


AP Photo
AP Photo/Ng Han Guan
Business Video
Interactive
Made in China: Too Many Imports Too Soon?
Latest News
China starts bullet train safety inspections

China says Libyan oil projects of mutual benefit

China Construction Bank 1H profit jumps to $14.5B

China's US assets 'safe,' Biden tells students

China: ConocoPhillips finds 9 oil spill sources

Multimedia
Video photo gallery on trash in China
China celebrates 60th year
Panorama of Tiananmen Square
Remembering Tiananmen
A year after China quake
Migrant laborers struggle to find work
Checking Beijing's Air
China's morning exercises in parks
Exploring Chinese Cuisine
Beijing Architecture Changes For Games
Woman Rescues Homeless Quake Dogs
China Holds Funeral for Panda
China's 1-child Policy Causes Extra Pain
Map of Earthquake Zone in Central China
Entrepreneurs Move Into, Out of China
Olypmics in Beijing Highlight China's Water Woes
Foreign Buyers Head to China Despite Problems
Coal Use Produces Pollution, Illness
Coal Means Profit, Woes for China
China Extending Its Reach Around the World
In China, the Desert Closes In
Latest News
APNewsBreak: Global Fund lifts China grant freeze

Philippines, Vietnam get warships in China spat

Fire at ceramics factory in China kills 15 people

Beijing's Panchen Lama ends trip to monastery

5 Uighur Chinese held in Malaysia risk deportation

Buy AP Photo Reprints
Audio Slideshow
Panorama of Tiananmen Square
Remembering Tiananmen

CHENGDU, China (AP) -- Vice President Joe Biden wrapped up a visit to China on Sunday that offered him extensive face-time with the country's expected future leader, Xi Jinping, and delivered a strong message of U.S. mutual interdependence with the world's second-largest economy.

Biden also made the case for continued U.S. economic vitality despite current budget woes and sought to reassure China's leaders and ordinary citizens about the safety of their assets in the United States following the downgrading of America's credit rating.

"You're safe," Biden told students in a question-and-answer session following a speech at Sichuan University in the southwestern city of Chengdu.

An official Xinhua News Agency commentary on Biden's visit said Sunday that China would be looking for actions, rather than words, from the U.S. government to restore confidence in the American economy by gradually reducing the deficit, cutting debt and promoting economic growth.

"What is especially important is to let the world see that the U.S. government and relevant departments have the determination, ability and political aspiration to take actions to resolve these complicated issues," the commentary said.

Biden and Xi, China's vice president who is expected to begin taking over the top leadership next year, later visited a high school that was rebuilt after the devastating 2008 earthquake, partly with the help of U.S. government and private assistance.

In his remarks to students, Biden emphasized the frequent exchanges between President Barack Obama and Chinese President Hu Jintao along with government officials in the political and economic field. He said there needed to be more contacts between their civilian and military leaders over security issues, especially on cybersecurity and maritime issues where the sides view matters from different perspectives.

"Our generals should be talking to each other as frequently as our diplomats," said Biden, who held formal talks with Xi and President Hu Jintao during his five-day visit.

Military-to-military exchanges have a troubled history, with China suspending them to register its anger at U.S. actions on the political front or toward Taiwan, the U.S. ally Beijing claims as its own territory. Though revived last year, they face a new threat when the U.S. announces on Oct. 1 whether it will provide new F-16 warplanes to the island.

Biden said the U.S. and China both need global stability, including preventing Iran and North Korea from obtaining nuclear weapons. He also reasserted that the U.S. will remain a Pacific nation in the future, saying that the American presence has benefited regional stability and allowed China to focus on economic development.

Biden said he recognized frustrations among many Chinese businesspeople and officials at the time needed to obtain visas to visit the U.S. and said Washington was working on improvements. Addressing complaints over restrictions on high-tech exports to China, he said Washington had struck 1,000 items off the blacklist.

But he said U.S. companies continue to face major investment barriers in China, a frequent complaint in the U.S. business community here. He said U.S. businesses were locked out of entire fields and face "restrictions that no other major economy imposes on us or so broadly."

Rather than fearing Chinese competition, the U.S. relishes the pressure to become more competitive and hopes for continued Chinese prosperity, with the $110 billion in U.S. exports to China last year generating hundreds of thousands of jobs, Biden said.

China's concerns over its $1.2 trillion in U.S. Treasury holdings have featured high in the media and national consciousness, underscored by squabbles over raising the U.S. debt ceiling and downgrading of America's credit rating.

However, Biden noted that the interest rate on Treasurys fell following the downgrade, making them more sought-after than ever.

"If the world thought, my God, they've been downgraded and they're not going to make good on their debt, it would not have been viewed as the safest haven in all the world to invest," he said.

Biden departs Monday morning for Mongolia before heading to Japan, the final stop on his Asian tour.

© 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy and Terms of Use.