Capital Hill
© UnknownThe US government was forced to shut down its non-essential services on October 1 when the Republican-led House of Representatives refused to approve money for government operations.
China has warned the US that the prospect of Washington's first ever default over the debt-ceiling deadline could seriously harm Chinese economic interests.

In a Monday press conference, China's Vice Finance Minister Zhu Guangyao said "the clock is ticking" and politicians in Washington should "ensure the safety of the Chinese investments".
"As the world's largest economy and the issuer of the major reserve currency in the world, it is important for the US to maintain the creditworthiness of its Treasury bonds," Guangyao said.
The Chinese official said China has made clear its unease with the political impasse in Washington with the US government¸ which is in a partial shutdown due to a dispute between Republicans and Democrats on spending legislation.

"The US has a large amount of direct investment in China and China has a vast number of US Treasury bonds....The US is clearly aware of China's concerns about the financial stalemate [in Washington] and China's request for the US to ensure the safety of Chinese investments."
The US government shutdown has entered its seventh day with little sign of an immediate resolution, while an even more serious problem of the debt-ceiling looms. Washington will not have enough cash to pay its bills if an agreement to raise its debt ceiling is not reached by October 17.

The forced shut down came after Republican-led House of Representatives refused to approve money for government operations. The lawmakers demanded that the administration should first delay Obama's new health care law known as the Obamacare.

China held $1.28 trillion in US treasuries in July 2013, according to US Treasury data, although the true figure could well be higher than this as China also invests through intermediaries.