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Sat, Aug 20 2011 Gunfire in Tripoli Sat, Aug 20 2011 Biden tells China not to count out U.S. strength Tweet Share this Email Print Related News Biden seeks to reassure China on U.S. debt Fri, Aug 19 2011 China, U.S. seek to boost confidence as Biden visits Thu, Aug 18 2011 Obama to unveil economic plan in September speech Wed, Aug 17 2011 China state media press U.S. debt as Biden visits Wed, Aug 17 2011 PREVIEW-Biden seeks strong China ties under shadow of debt Tue, Aug 16 2011 Analysis & Opinion US medicine could be bitter for dollar A safer, calmer China? Related Topics World » Politics » Related Video Biden begins second leg of his China tour. Sat, Aug 20 2011 Biden meets Chinese premier and president 1 of 4. U.S. Vice President Joe Biden (L) and China's Premier Wen Jiabao (R) smile during their meeting at the Zhongnanhai leadership compound in Beijing August 19, 2011. Credit: Reuters/Andy Wong/Pool By Jeff Mason Chengdu, CHINA | Sun Aug 21, 2011 12:30am EDT Chengdu, CHINA (Reuters) - Vice President Joe Biden on Sunday rejected claims that American power is on the wane and told a Chinese audience that his government would never default, near the end of a trip that has stressed interdependence between the world's two biggest economies. "You're safe," Biden told a university in Sichuan, the southwest province that is the second and last stop of his visit to China, in answer to a question about Washington's ability to repay its debt. "Please understand that no one cares more about this than we do, since Americans own 87 percent of all our financial assets and 69 percent of all our treasury bonds, while China owns 1 percent of our financial assets and 8 percent of our treasury bills, respectively," Biden said at Sichuan University in the provincial capital, Chengdu. "So our interest is not just to protect Chinese investment. We have an overarching interest in protecting the investment, while the United States has never defaulted and never will default." Biden used his speech to renew U.S. calls for Beijing to do more to rein in North Korea and Iran, whose nuclear ambitions have alarmed the West. But his key theme was, as it has been throughout his five-day visit to China, economic: that the United States can reverse its high debt and low growth, and that China should play a part by buying more American-made goods and services. "I also know that some of you are skeptical about America's future prospects. With that in view, I would like to suggest that I respectfully disagree with that view and will allay your concerns," said Biden. He told the audience to remember that "America today is by far the largest economy, with a GDP of almost $15 trillion, about two and a half times as large as China's." Biden and President Barack Obama, both Democrats, face re-election next year. Biden said the debate with Republicans over how to tackle U.S. fiscal problems would be at the heart of the 2012 presidential election. Chinese Vice President Xi Jinping, who is virtually certain to succeed Hu Jintao as Chinese President in early 2013, has been Biden's host for this visit, and Obama administration officials have said they want to build trust with the emerging leader ahead of the transition. "NOTHING TO WORRY ABOUT" Sichuan province is a fast-growing example of the inland development that Beijing hopes will power the Chinese economy in coming decades -- and also a slice of the rising consumer power that Washington hopes will buy more U.S. goods and reduce a huge trade deficit with China. With 80 million people, Sichuan enjoyed economic growth of 15.1 percent last year, according to government statistics. Such economic concerns have dominated Biden's visit to China, which began on Wednesday, and has featured a succession of unusually vocal declarations of Beijing's confidence in the U.S. economy, despite Standard & Poor's recent downgrade of the sovereign credit rating of the United States. China has quarreled with the United States on trade, Internet censorship, human rights and U.S. arms sales to Taiwan. While those thorny disputes have not disappeared, they appear to have been overtaken by a shared desire to convey a message of confidence and cooperation to a jittery global economy. Biden told Premier Wen Jiabao on Friday that China had "nothing to worry about" over the safety of its vast holdings of Treasury debt, and Wen voiced confidence in the resilience of the U.S. economy, troubled by debt worries and sluggish growth. Wen said he was confident the U.S. economy -- which investors fear could slip into recession following a run of poor data -- would get back on track for healthy growth. He echoed earlier comments from China's Vice President Xi Jinping. Chinese officials have sought assurances that Beijing's vast holdings of dollar assets, including U.S. Treasury debt, remain safe, despite the downgrade. Wen said he noted the reassuring message conveyed by Biden. Analysts estimate two thirds of China's $3.2 trillion in foreign exchange reserves, the world's largest, are in dollar holdings, making it the biggest U.S. foreign creditor. China's Vice President Xi is also due to meet Biden in Chengdu, a city known for its spicy food and panda breeding center. Biden will fly to Mongolia on Monday morning for a day before heading onto Japan. (Additional reporting by Chris Buckley and Michael Martina in Beijing; Editing by Yoko Nishikawa) World Politics Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (2) txgadfly wrote: Why would the people of the USA want to pay back trillions of dollars that were spent against their will by a Government that blatantly despised public opinion? The people have been and still are more than 75% opposed to this Government’s wars yet they have next to zero percent representation in that Government. Why? How? Why should they feel obligated to throw away yet more money supporting the policies of an organization that manipulates the electoral process so thoroughly that the majority have next to no say so in policy? Of course the people in control “followed the rules” and in fact “made up the rules” to order. What Government does not? The question is whether the “winners” have the support of the population. When the current holders of titles say that they will never lose control, can you believe them? What does history tell you? Aug 20, 2011 12:00am EDT -- Report as abuse deerecub1977 wrote: I wouldnt believe . Aug 20, 2011 12:07am EDT -- Report as abuse See All Comments » Add Your Comment Social Stream (What's this?) 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