China tells US to avoid debt crisis for sake of global economy

A senior Chinese official has warned that the "clock is ticking" to avoid a US default that could hurt China's interests and the global economy. China, the US's largest creditor, is "naturally concerned about developments in the US fiscal cliff", vice finance minister Zhu Guangyao said. Washington must agree a deal to raise its borrowing limit by 17 October, or risk not being able to pay its bills. He asked that "the US earnestly take steps to resolve" the issue. US Treasury Secretary Jacob Lew has said that unless Congress agrees an increase in the debt ceiling by 17 October, Washington will be left with about $30bn in cash to meet its obligations - about half the $60bn-a-day needed. For many governments and investors the approaching deadlock over the debt ceiling is far more critical than the current impasse over the federal shutdown caused by Congress's failure to agree a new budget.