Communist China gave the United States a stern lecture on capitalism Saturday, saying Washington needs to come to terms with the painful fact that the days when it could just borrow its way out of messes of its own making are gone.

A stinging commentary by the official Xinhua news agency condemned the U.S. for what it called its “debt addiction” and “short-sighted political wrangling,” and said the world needs a new, stable global reserve currency.

Xinhua said China now has every right to demand the U.S. address its structural debt problems and ensure the safety of China's dollar assets.

The commentary went on to say the U.S. has to reestablish the common sense principle that one should live within its means.

China's central bank is the largest holder of U.S. public debt.

The article came after the rating agency Standard and Poor's downgraded the U.S. rating from the top flight triple-A to AA+.