Biden heads to China under debt cloud

US Vice President Joe Biden arrives in China Wednesday to try to revive his country’s image after a historic debt downgrade and build a rapport with the man expected to be the Asian power’s next leader.
During his five-day visit, Biden will stress the strengths of the US economy, just weeks after Washington came close to default, prompting a storm of criticism in China — the largest foreign holder of US debt.
The 68-year-old will meet with China’s top leaders, including his counterpart Xi Jinping, who is widely expected to replace current President Hu Jintao next year and remains virtually unknown in US policy circles.
Biden will focus on building a working relationship with Xi, but his trip risks being overshadowed by China’s concerns about the safety of its US investments, particularly after a US credit downgrade.
The People’s Daily, mouthpiece of China’s Communist Party, published a comment piece ahead of his arrival Wednesday urging Biden to “put forward concrete measures” to address Beijing’s worries.
China is the largest holder of US debt with around $1.2 trillion in US Treasuries by the end of June.
Its state-run media has run a series of scathing commentaries over the US debt crisis, calling the United States irresponsible and demanding that it live within its means.
Ahead of his arrival, Biden used an interview with one of China’s most prominent financial magazines to put up a robust defence of his country’s economy.
“I’ve been in public service for a long time — 38 years, in fact. During that time, many people have said, as some are saying now, that the US is in decline. They were wrong then, and they’re wrong now,” he told Caijing magazine.
Lael Brainard, undersecretary of the Treasury for international affairs, said Monday the number-two US leader would tell China it should focus on its own economic reforms.
Brainard said that Biden would suggest Beijing let its currency appreciate and shift from a reliance on exports to an economy based on consumption.
Biden’s trip also comes amid concern in the United States about China’s human rights record, with calls for the vice president to visit Liu Xia, the wife of jailed dissident writer Liu Xiaobo.