Hi Leap1!
Here are various holdings by country of US Treasury securities (but there are other forms of US debt that China may hold):
https://www.statista.com/statistics/246420/major-foreign-hol…
Cheers!
Murph
BL Home Fool
Murphy,
Good to see you. But I know much of that. The actual percentage China holds has fallen because are debt has gone up a lot. So now it is around 3%. It had been 8 to 9%. There was scuttlebutt the Chinese have been unloading some of it.
The American public holds the most Treasuries, then FED, then Japan and then China. It would not surprise me if the EU in aggregate held more than Japan or China.
There is no threat of China selling all our treasuries. That just means rates would fall for a while. There is no threat of China owning us.
Econ treats the trade imbalance with China as an interest free loan we made to China. The Chinese or whoever amasses those dollars will one day long after inflation need to spend the dollars in the US. The imbalance works in our favor.
The reaction of building factories again in the US for all sorts of reasons now reintroduces economies of scale into the US economy.