China and the Debt Ceiling

Often, much of what China says can be evaluated quite simply.  As one of many adversaries we have, China has vested interest in the status quo in Washington D.C. remaining in power.  Jijo Jacob reported that the Xinhua news agency, said that the world should be a “de-Americanised [sic] world”1.  Furthering that “the destinies of people should not be left in the hands of a hypocritical nation with a dysfunctional government.”2

This is laughable, given the history of the People’s “Republic” of China (PRC). Nonetheless, perhaps we should examine what exactly the Xinhua news agency is actually saying.  First, they refer to the United States government, as dysfunctional.  In actuality, the government shutdown, proves that our system of government is functioning as it was intended to.  Although, if it were not for the establishment GOP’s lack of intestinal fortitude, this government shutdown would actual prove some fruitful results, such as defunding ObamaCare.  (If the GOP funds this monstrosity, it should be called Obama-Boehner-McConnel-Ryan-Cornyn-etcCare  But I digress.)

By calling the current situation in Washington D.C. as dysfunctional, the PRC is lambasting the separation of powers.  Although, this is a point the PRC does not make when insulting our system of government; the separation of powers, and the Tea-Party Republicans resistance to increasing the debt ceiling, is damaging to the PRC.  The Xinhua news agency is quoted in Jacob’s article as follows:

“… the cyclical stagnation in Washington for a viable bipartisan solution over a federal budget and an approval for raising debt ceiling [emphasis added] has again left many nations’ tremendous dollar assets in jeopardy and the international community highly agonized[sic]”.3

It is fairly obvious that the PRC, as the highest foreign owner of U.S. Treasuries at 1.28 trillion as of July, becomes empowered with a debt ceiling increase and current deficit spending levels.  The interests that we pay to the PRC is nothing more than free money.  Furthermore, the PRC knows that failing to increase the debt ceiling does not equate to a U.S. default, and the interest payments to them, would continue regardless of the political outcome.  Moreover, the national debt is our nations single greatest threat to national security.  The higher this debt becomes the more power and influence the PRC (and the Russian Federation) will have.

Much of what the Xinhua news agency spewed forth, is nothing but communist propaganda.  However, it is evident that China supports the status quo, a monstrous U.S. national debt, and a U.S. government that functions in ways that best serve the goals of the PRC.  The current Democrats and establishment-Republicans are playing right into the strategy of the PRC.  However, true fiscal conservatives are the mortal enemies of the PRC.  A balanced budget, debt reduction, and reformed regulatory system in the United States would spell disaster for the PRC strategy.  It is evident that the PRC fears a change in Washington D.C.  It would be no surprise if the ruling class in Washington D.C. cannot fathom that their actions are empowering the PRC to become an extremely potent adversary because of their horrible fiscal policies.


  1.  Jico Jacob.  Debt Ceiling:  China Calls for the World to Be De-Americanised.  International Business Daily.  Oct. 13, 2013.
  2. Ibid.
  3. Ibid.