Geithner says China's dollar holdings are safe

In a speech at Peking University yesterday, U.S. Treasury Secretary Timothy said the global economy has shown signs of stability after the bailout measures were taken in time.　　However, a successful transition to a more balanced and stable global economy will require major changes in economic policy and financial regulation around the world.　　Replying to the question, Geithner said he would continue to work to allay Beijing's fears about the security of the dollar's assets, saying China's holdings of dollar assets were safe.　　China is America's biggest creditor, and Premier Wen Jiabao expressed concern about the safety of China's holdings in the March. Shen Yu, a researcher at the Institute of World Economics and Political Studies at the Chinese Academy of Social Sciences, said Mr Geithner's main goal was to sell U.S. Treasuries and demand that China continue to increase its holdings to solve the U.S. cash crunch. Data show that the U.S. fiscal deficit is rising, the 2008 fiscal year is 455 billion U.S. dollars, 2009 fiscal year is expected to rise to 1.84 trillion U.S. dollars, equivalent to 13% of U.S. GDP. The New York Times pointed out whether China's willingness to continue buying US Treasuries was a "big deal" for Mr Geithner's trip.