The all new
CBS News App for Android® for iPad® for iPhone®
Fully redesigned. Featuring CBSN, 24/7 live news. Get the App

China mocks U.S. as possible default looms, but as our biggest investor, China would suffer too

BEIJING Cartoons mocking the U.S. have popped up in Chinese state media, ridiculing American politicians for the deadlock blocking a deal to end the government shutdown and avert a debt default. America is being depicted as a beggar, and a country on life-support.

Mei Xinyu, who advises the Chinese government from his position in the Commerce Ministry, told CBS News the "gentlemen" on Capitol Hill don't seem to care about how their "monkey business" is hurting the international reputation and image of their nation abroad.

He said that if Congress fails to raise the debt ceiling by the Thursday deadline and, in turn, defaults on a national debt payment, China will likely buy fewer U.S. Treasury bonds to limit its exposure to a weakening U.S. economy.

"Average Chinese believe (their) government is able to handle this situation, and won't let it shipwreck China's economy," he told CBS News.

But Michael Pettis, an American finance professor at Peking University, said China won't really be immune if the U.S. government does default.

"If we were to see uncertainty in the U.S. economy drag through into November and December, and that caused Americans to cut back on the amount of purchases they would have normally done for Christmas, than that would affect the Chinese economy directly," he said.

Such a huge amount of goods that Americans buy come from the Chinese factories and workforce that Pettis said a significantly slower holiday season could "have a seriously negative effect" across China.

From 7,000 miles away, the Chinese are watching D.C. closely, worried about the fate of their 1.3 trillion dollar investment in American debt.