Top creditors China, Japan step up concerns over US shutdown
BEIJING/TOKYO (REUTERS) - China and Japan, the United States' biggest creditors, are increasingly worried the US government shutdown and standoff over the debt ceiling could wreak havoc on their trillions of dollars of investments in US Treasury bonds.
Beijing and Tokyo have publicly called on the White House and Congress to resolve the dispute, which could threaten a US debt default as soon as next week, and Asia's two biggest economies are privately urging Washington to find a solution.
Japanese officials held several emergency telephone conferences with US Treasury Department officials on Monday, Japan's Nikkei newspaper reported, citing unnamed sources.
Tokyo urged the Americans to hammer out a deal to increase the debt ceiling or risk a default that could plunge financial markets into turmoil, the newspaper said on Tuesday.