China's state-controlled media say a last-minute deal to raise the U.S. debt ceiling has merely postponed deeper problems that threaten the world economy.In a commentary Tuesday, the People's Daily newspaper said that while the threat of default has been avoided, America's debt problems are unresolved and likely to grow more serious. The newspaper is the most important mouthpiece for China's ruling Communist Party.
The commentary says the American debt burden continues to cast a shadow over the nation's economic recovery, and increases the risks faced by the rest of the world economy.People's Daily says that despite the debt concerns, the dollar remains the world's dominant hard currency and other nation's have no choice but to accept it. China is America's largest creditor outside the United States.