China worried by prospect of US debt default

China, America’s largest lender, fears that US failure to reach a deal could affect the global economy.

If the US dafaults on its debt, many fear it could have grave consequences for the global economy.

But China, which is US’ biggest trading partner, would be particularly affected as the world’s two largest economies are deeply interconnected.

China is America’s largest lender and holds nearly $3.5 trillion in US dollar assets.