China state TV says US deal lacks 'substance'

Chinese state television on Monday criticised a last-minute agreement to raise the US debt ceiling to avoid a default, saying it had more "pomp and ceremony than substance". The deal announced by President Barack Obama late Sunday after tortuous negotiations would raise America's $14.3 trillion debt ceiling by at least $2.1 trillion and make more than $2.4 trillion in spending cuts. "It's a political performance which has more pomp and ceremony than substance," China Central Television said in a rare editorial broadcast on its evening news bulletin. "The American taxpayer and global debt holders suddenly find out that the debt crisis is only a tool ... that the main concern is to get more political capital for the next presidential election." The Chinese government has so far made no official response to the agreement, which it is hoped will avert a potentially catastrophic default by the world's largest economy. The package announced by Obama still needs to be approved by Congress. China is by far the top holder of US debt with holdings at $1.16 trillion in May, according to the latest US data, and has raised concerns about its investment in the past. Chinese state media last week attacked the United States over its debt wrangling, warning that lawmakers could depress the value of the dollar, fuel global inflation and plunge the world into another recession.