China state paper says US debt downgrade a "warning bell"

BEIJING - China's top newspaper on Sunday warned that Asian exporters could be among the biggest victims of mounting US economic woes after Standard and Poor's downgraded the United States' sovereign credit rating.
Although Beijing officials have so far been publicly mute about the blow to Washington after Standard and Poor's stripped the United States of its cherished top-tier AAA credit rating, the People's Daily, the main newspaper of China's ruling Communist Party, gave a bleak assessment of the potential consequences for China and other emerging economies.
"The lowering of the United States' long-term sovereign credit rating has sounded a warning bell for the international currency system dominated by the US dollar," said economist Sun Lijian, writing in the paper.
The United States government may not be able to recover its top-grade credit score if its deficit continues to grow, Sun wrote in a brief commentary about the move.
"Yet the biggest victims may not be the United States itself, but other countries that have depended on external demand to amass national wealth -- be they Asian nations that depend on exporting goods or nations in Latin America and the Middle East, as well as Russia, that depend on exporting resources," he wrote.
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