China is not bothered because

China is more than happy to own almost a fifth of the U.S. debt owned by foreigners. Owning U.S. Treasury notes helps China's economy grow. It keeps the yuan weak relative to the dollar. As a result, Chinese exports are less expensive than U.S. products. China's highest priority is creating enough jobs for its 1.4 billion people.

The United States allowed China to become one of its biggest bankers because the American people enjoy low consumer prices. Selling debt to China pays for federal spending that spurs U.S. economic growth. It also keeps U.S. interest rates low. But China's ownership of the U.S. debt is shifting the economic balance of power in its favor.

Posted By: ghostof barry butler, Sep 18, 12:17:47