“…Gone are the days when China was under pressure from Western criticism because of its failure to respect human rights. Today, Beijing is with great delight to share their economic advice. Commenting on the market turmoil, the People’s Daily, organ of the Communist Party, called on western countries to ‘take their courage’ to reduce their debt.
“‘If the developed countries refuse to take responsibility, there will be serious consequences on the stability and development of the global economy,’ said the Xinhua news agency after the downgrade of the U.S. debt rating.
“On Saturday, August 6, Xinhua had already criticized Uncle Sam and denounced the country living on credit. ‘In order to cure their addiction to debt, the U.S. must restore the principle of common sense that we must live within our means,’ wrote the Chinese agency.
“China called Washington to make cuts in its ‘massive military spending’ and its over-inflated costs of social system. ‘China now has all rights to require the United States to address their structural problems of debt.’
“…China has created its own rating agency, Dagong, which notes the debt of the Western countries with much more severity than the three recognized agencies: Standard and Poor’s, Moody’s and Fitch.
“Last Wednesday, the Chinese agency had already downgraded the rating of U.S. debt to A+ to ‘a negative outlook,’ three notches below the rating assigned by Standard and Poor’s. And the agency has also deteriorated last year, the French debt rating to ‘AA with a negative outlook.’ From Beijing’s view, western countries are considered more vulnerable than they would appear.”