US will never default on debt : US Vice President Joe Biden

CHENGDU: US Vice President Joe Biden said Sunday that the world's biggest economy never defaulted on its debt and never would, during a visit aimed at boosting Chinese confidence in america economy.

"The United States has never defaulted and never will, " Biden told countless university students in the southwestern boom town of Chengdu on the final day of the charm offensive in China.

China is the largest foreign holder of ALL OF US debt, and Biden has used his first official visit to the country because becoming vice president to reassure its leaders their massive investment remains safe following the US narrowly avoided a catastrophic default earlier this month.

Biden told students at Sichuan University that america remained the "single best bet" for investment -- despite the historic downgrade from the country's top-notch credit rating by Standard & Poor's.

During the speech which touched on a variety of issues including human rights, Biden urged China to "cherish" the exchange between its citizens and also the government, following the toughest crackdown on Chinese dissidents in years.



"China ought to cherish an exchange between its citizens and students and their government, inch Biden told the students.

"Liberty unlocks a people's full potential and within its absence, unrest festers. "

Human rights activists said authorities were conducting a heavy-handed clampdown on dissenting voices coinciding with Biden's trip.

Biden raised human rights concerns during his meetings with Chinese leaders a week ago, US officials have said, but they refused to go into details of whether anyone cases were brought up.

In Chengdu, Biden will meet his counterpart Xi Jinping -- who's slated to become China's top leader next year -- and will witness the reconstruction efforts following a 2008 Sichuan earthquake.

Chengdu is the capital of Sichuan province, where nearly 200 of the Fortune 500 largest firms on the planet have invested.