2.  Fallin U.S. dollar-denominated asset
values
 Affecting China's export and shipping
negatively
 China to face greater pressure from
imported inflation

3.  China, America's largest creditor, said it had
every right to demand the nation address its
structural debt problems and ensure the
safety of the $1.2 trillion of US debt that it
holds.

4.  After the US debt crisis china observed the
situation peacefully instead because it
needed to pursue a balance among
maintaining a proper economic growth,
stabilizing commodity prices and reducing
the risk of its financial system, and any new
stimulus policy would break that balance.

5.  And if the balance was broken, the results
would be much more severe
 It focus on further accelerating the exchange
rate reform, foreign reserve policies and the
RMB internationalization policies.

6.  “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.”
 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.
 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.

7. US treasuries, once seen as the safest
investment in the world, are now rated lower
than bonds issued by countries such as the
UK, Germany or France. The move is likely to
raise borrowing costs for the US government,
companies and consumers.

8. he reassured an
audience at Sichuan
University that his
government would
never default and that
China was "safe".

9.  since Americans own 87 percent of all China’s
financial assets and 69 percent of all treasury
bonds, while China owns 1 percent of usa’s
financial assets and 8 percent of our treasury
bills, respectively,”
 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.”

10.  Beijing’s vast holdings of dollar assets,
including U.S. Treasury debt, remain safe,
despite the downgrade.