"A rising China is a positive development, not only for the people of China but for the United States and the world as a whole," U.S. Vice President Joseph Biden said recently when giving a speech on U.S.-China relations in Chengdu, China.
"But I know that some . . . are skeptical about America’s [economy]. . . America today is by far the world’s largest economy with a Gross Domestic Product of almost $15 trillion, about two and a half times as large as China’s, the second largest; with a per-capita Gross Domestic Product which is more than $47,000 -- 11 times that of China’s.
"Some Chinese are concerned about the safety of [their] investments in American assets," Vice President Biden said. "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. So our interest is not just to protect Chinese investment. We have an overarching interest in protecting the investment.
"The United States has never defaulted," Vice President Biden flatly stated. "And never will default.
"I also have confidence in the fundamentals of our economy," Vice President Biden continued. "America is even better equipped to compete in the economy of the future than it was of the economy of the past. In the 20th century, the wealth of nation was . . . measured by . . . its natural resources, the expanse of its landmass, the size of its population, and the potency of its army. In the 21st century, the true wealth of a nation will be found in the creative minds of its people and their ability to innovate. ... The United States is hardwired for innovation. ... It has enabled generation after generation of Americans to give life to world-changing ideas -- from the cotton gin, to the airplane, to the microchip, to the Internet, to the world-leading companies like General Electric, Ford, Microsoft and Google.
"These accomplishments were made possible not because there’s anything unique about Americans," Vice President Biden concluded. "It’s ... because of the enduring strength of our political and economic system, and the way we educate our children, a system that welcomes immigrants from across the globe who enrich our national fabric, and revitalize our diverse multi-ethnic society."