China media: US debt deal
- 17 October 2013
- From the section China
Chinese media say the damage caused to the US dollar's reputation cannot be undone despite a debt deal that ended a partial shutdown of the government.
The US Congress passed a bill to reopen the government and raise the federal debt limit, with hours to spare before the nation risked default on Thursday.
"Since the 2008 global financial crisis, the US dollar hegemony has been universally condemned," the People's Daily says.
The Nan Fang Daily urges global markets to reduce their reliance on the US dollar.
"Currently, economic nationalists around the world indignantly view the US dollar and US debt as tools in a 'conspiracy' to 'kidnap and blackmail' the world. Regardless of whether this view is extreme, if we want to get out of this passive unfavourable situation in the long term, we can only reduce the role of US dollar and US debt in the global market," the paper says.
The People's Daily further adds that other currencies like the yuan (RMB) and euro have the potential to replace the US dollar as the world's reserve currency.
"Analysts have pointed out that although the status of the US dollar is currently unmatched, changes have started to occur. Economists say that with the internationalisation of the Euro, Japanese yen, British pound, Australian dollar, Canadian dollar and the RMB, countries are increasingly bypassing the US dollar and entering into currency swap agreements. These have all dimmed the aura of the dollar as a reserve currency," it adds.
The Nan Fang Daily backs the yuan as the currency which can eventually become more popular than the US dollar.
"For the RMB internationalisation strategy the Chinese government has been cautiously but steadily advancing, the decline of the dollar hegemony may indeed be a turning point. If the dollar is less attractive, the yuan will become relatively attractive," it adds.
A commentary in popular Sina news portal says "the fate of the United States debt [problem] is ominous...Do not forget, debt has existed since the founding of the United States".
China's oldest person
Turning to domestic news, The South China Morning Post reports that the son of a revolutionary hero has apologised to his former school teachers for their persecution during the Cultural Revolution.
Chen Xiaolu, the youngest son of famous People's Liberation Army leader Marshal Chen Yi, has "apologised to teachers and staff at his former school who were tortured or sent to labour camps between 1966 and 1976", the paper says.
The Cultural Revolution, a nationwide purge launched by Chairman Mao that lasted a decade, still divides opinion in China.
"The apologies come at a time of intense debate over the nation's future in the run-up to a party meeting next month. They also emerge after a life sentence was imposed on former Politburo member Bo Xilai on charges of corruption and abuse of power," it adds.
Meanwhile, the Nan Fang Daily reports power has been fully restored in Yuyao City, Zhejiang province, after a typhoon and subsequent floods had disturbed supplies.
Residents in Yuyao have been in confrontation with the authorities since last week after complaining about what they say was a poor government response to widespread flooding caused by the typhoon.
""The formerly obscure city of Yuyao, Zhejiang Province, has been at the centre of more than one kind of storm this week, as a natural disaster turned into man-made chaos," The Global Times says.
"Over the last few days, as many as 5,000 residents, according to one eyewitness estimate, descended on local government buildings to protest against whitewashed media reports and the slow relief work after a severe flood," the paper adds.
And finally, a 127-year-old woman from Xinjiang has reportedly become China's oldest person, according to the China News Network.