The US Sovereign Debt Problems And Its Impact On Chinese Economy

As the global financial crisis in2008, the global economy get into recession, inorder to overcome the effects of the economic crisis, the US budget deficit began tospeed expansion. In2010， European sovereign debt crisis take to another strongimpact on the global economy which has not yet recovered. With the expansion ofthe US budget deficit, the rapid expansion of the US sovereign debt scale lead to thesovereign credit rating was lowered, which led all sectors of the US sovereign debtconcerns. Despite the current US economic situation has improved, the magnitude ofthe deficit reduction is also larger, but the size of the US federal government debt isstill continuing to rise. In response to the sovereign debt risk, loose monetary policyof the relative depreciation of the value of the US treasury market and the dollar’sdecline. Despite the expected economic outlook is favorable, but the US sovereigndebt problem will not be scattered. As the America’s largest creditor, the pressure ishuge which the China face to the US sovereign debt issues directly. The indirectdefault of the US sovereign debt damaged our foreign exchange reserves worth,RMB appreciation pressure increases and the impact of China’s export trade,imported inflation is also seriously affected the stable operation of our economy.