A Chinese central bank official says the country will continue buying Treasuries and other U.S. government debt.

Investing in U.S. Treasury bills is an important component part of China's foreign currency investment regime, People's Bank of China Vice Governor Hu Xiaolian said at a news conference on Monday.

While such investments will continue, Hu said China would also pay close attention to fluctuations in the value of our assets, a statement apparently aimed at concerns that rising U.S. government debt could spur inflation and weaken the dollar.

China is Washington's biggest foreign creditor, holding an estimated $1 trillion in U.S. government debt. A weaker dollar would erode the value of those assets.