China keen to invest in US infrastructure: Commerce Minister Chen Deming

BEIJING: Seeking to defuse fears that it might use its massive USD 3.2 trillion in foreign reserves as a "political weapon", China today said it is willing to turn some of its holdings of US debt into investment in America to improve its infrastructure.

"China is willing to turn some of our holdings of your debt into investment in the United States, hoping to create jobs for the United States," Chinese Commerce Minister Chen Deming said.

Such investments would tie China more closely to Western economies and might help defuse their fears China might use its USD 3.2 trillion in foreign reserves as a "political weapon."

China has about USD 1.15 trillion of Treasury and other US government debt.

Beijing now wants to invest its over USD 3.2 trillion of US debt into renovating America's ageing infrastructure.

However, it has also asked Washington to relax restrictions on exports of dual use technologies to increase US exports to the country.

Chen said his country wants closer cooperation with the US in infrastructure, clean energy and technology.

"We hope to achieve cooperation in the area of infrastructure," Chen told members of the American Chamber of Commerce in China observing that much American famed infrastructure like railways and port needed renovation.

Chen said China wants to see Chinese and US companies cooperate more closely on clean energy, environmental and energy-saving technology, information technology, biotechnology, pharmaceuticals and medical devices.