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Scholar Warns of Risks to Chinese Assets from Downgrade of U.S. Credit Outlook

In a recent interview regarding the downgrade of the U.S. credit outlook, Renmin University Professor Zhao Xijun warns that the book value of Chinese investments (in U.S. government debt) may incur a loss. “Although the U.S. government is not facing default on its debt, we should be on the alert, continue to diversify our investments, and take risk control measures as well.”

Source: China Review News, April 21, 2011