Local people in Cambodia's capital, Phnom Penh, have read the signed article by Chinese President Xi Jinping in Cambodian media and expressed their fervent anticipation of the Chinese leader's visit.
Cambodia is the last stop of Xi's Southeast Asia tour, including state visits to Vietnam and Malaysia. Before Xi's arrival in Phnom Penh on Thursday, Cambodian media outlets, including the Khmer Times, Jian Hua Daily, and Fresh News, published his signed article.
In the article titled "Together We Strive, Together We Thrive: Toward a Stable and Sustainable China-Cambodia Community with a Shared Future in the New Era," Xi said China has been Cambodia's largest trading partner and largest source of investment, with China-supported infrastructure projects bolstering the long-term development of the country.
"China has helped Cambodia build roads, facilitating people's travel. That's friendship," said Huang Ming, a local market vendor.
"When I hear the President is paying a visit, I am happy. As a Khmer, I offer my support," said Hang Chanthy, a newsstand owner.
In the article, Xi said that China and Cambodia should bring the mutual political trust to a higher level and expand the mutually beneficial cooperation of higher quality.
He described China's friendship with Cambodia as "ironclad" -- and his article reflects that friendship, reaffirming China's steadfast commitment to further enhancing bilateral relations.
Locals laud Cambodian-Chinese friendship, welcome Xi's visit
Moody's Ratings on Friday slashed U.S. long-term issuer and senior unsecured ratings to Aa1, down from the highest rating of Aaa, citing rising government debt and interest payment ratios.
The rating firm also changed its outlook for U.S. ratings from negative to stable.
"This one-notch downgrade on our 21-notch rating scale reflects the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns," said a release by Moody's Ratings.
Moody's Ratings changed the outlook of U.S. sovereign rating from stable to negative in November 2023.
According to the Moody's release, "Successive U.S. administrations and Congress have failed to agree on measures to reverse the trend of large annual fiscal deficits and growing interest costs."
"We do not believe that material multi-year reductions in mandatory spending and deficits will result from current fiscal proposals under consideration. Over the next decade, we expect larger deficits as entitlement spending rises while government revenue remains broadly flat," the release read.
In turn, persistent, large fiscal deficits will drive the government's debt and interest burden higher, said Moody's Ratings.
U.S. fiscal performance is likely to deteriorate relative to its own past and compared to other highly-rated sovereigns, according to the credit rating agency.
The downgrade on Friday means the United States has lost its last triple-A credit rating from a major rating firm, following cuts by Fitch Ratings in 2023 and Standard and Poor's Global Ratings in 2011.
Moody's Ratings also forecasted a bleak outlook for the outlook of U.S. debt burden and fiscal conditions in the coming decade.
Without adjustments to taxation and spending, the United States is expected to continue to have limited budget flexibility, with mandatory spending, including interest expense, to rise to around 78 percent of total spending by 2035 from about 73 percent in 2024.
If the 2017 Tax Cuts and Jobs Act is extended, it will add around 4 trillion U.S. dollars to the federal fiscal primary (excluding interest payments) deficit over the next decade, according to Moody's Ratings.
Moody's Ratings anticipated that U.S. federal debt burden would rise to about 134 percent of GDP by 2035, compared to 98 percent in 2024.
Despite high demand for U.S. Treasury assets, higher Treasury yields since 2021 have contributed to a decline in debt affordability, warned Moody's Ratings.
Federal interest payments are likely to absorb around 30 percent of revenue by 2035, up from about 18 percent in 2024 and 9 percent in 2021, said Moody's Ratings.
"Moody's downgrade of the United States' credit rating should be a wake-up call to Trump and Congressional Republicans to end their reckless pursuit of their deficit-busting tax giveaway," U.S. Senate Democratic Leader Chuck Schumer said in a statement on Friday.
Moody's Ratings cuts U.S. credit rating citing budgetary burden
