Key regulatory reform

Major foreign holders of US government debt like China would welcome the Obama administration's proposals unraveled on Wednesday for what could be the biggest financial regulatory reform since the Great Depression.

Though such a regulatory overhaul is far from enough for ensuring the safety of China's vast holdings of US financial assets, the proposals send an unmistakable signal that Washington is dead earnest about cleaning up a financial system riddled with loopholes.

If the United States acts without delay to reform its financial regulatory system and puts its economy on track to a sustainable recovery, China will benefit a lot, not only as the largest holder of US treasury bonds but also as a part of the world economy.