Why does the United States owe China money, and how much does the United States owe China

China currently has nearly $2 trillion in foreign exchange reserves, 80 percent of which are in dollars, 60 percent of which are U.S. Treasury bonds. China's holdings of U.S. Treasury bonds account for about 10% of its issuance, and if China makes a move, the world will be watching. It doesn't matter if you buy it, if you sell it, it will cause panic selling, and if the bonds in China's hands are not taken off, it will be substantial, and the US Treasury bonds in China's foreign exchange reserves will suffer painful losses, which is equivalent to not getting along with yourself.

On the other hand, the United States lives by borrowing, and as soon as China sells, it is equivalent to cutting off the way for the United States to borrow, and the United States has no choice but to rely on the issuance of additional currency (indiscriminate printing of money) to maintain its finances. This has two disastrous consequences: First, the dollar will depreciate sharply, and the dollar part of China's foreign exchange reserves (accounting for 80%) will shrink seriously, and the US Treasury bond part will suffer from the double loss of dollar depreciation and ****, how much can China's foreign exchange reserves remain?

Second, due to the additional issuance of banknotes by the United States, it will cause serious inflation in the United States, and the American economy will be in a mess. But the United States is currently China's largest export market, and if the market collapses, China's export enterprises will be wiped out. A large number of enterprises in China that rely on supplying export enterprises will also suffer, and then trigger a chain reaction, the employees of these enterprises will be laid off, the demand of the domestic market will also shrink seriously, and how good can China's economy be?

Judging from the amount of U.S. Treasury bonds held by China, a large number of U.S. Treasury bonds will definitely put pressure on U.S. Treasury bonds and cause them to increase.

As a result, the yield to maturity of U.S. Treasury bonds will be raised, and the yield of U.S. Treasury bonds is basically used as a risk-free return, which is a relatively basic interest rate, so a large increase in yields will also affect a bunch of other interest rate levels.

Interest rates will be raised across the market. So for the banking system, it means an increase in the cost of capital, and then it further involves the real economy, that is, consumers will consume less, enterprises will borrow less, and in serious cases, the entire economy will fall into depression.

Of course, in order to prevent such a situation, the United States can stabilize the treasury bonds by repurchasing a large number of treasury bonds from the market, but this is equivalent to saying that it needs to passively put funds into the money market, and it will lose the initiative to implement monetary policy. In addition, the funds for the repurchase of government bonds will also put pressure on the fiscal body, and if a large amount of money is printed, it may cause inflation.

In addition, the degree of this impact is not the same in different periods, for example, the current situation is very strong in demand for U.S. Treasury bonds from a global perspective, and its yield level is also at a very low position.

But if you don't take into account some other complicating factors, that's basically the case. Hope it helps!

The United States owes China so much money, isn't it afraid that it will not come back?Actually, the state is smart.

What is the difference between this and private microfinance companies?But the difference is that the Yankees are letting China raise money, and China will eat some interest. As for whether the capital can be recovered, let's talk about it. It's still the high level of experts, and whatever they say is so beautiful!

The U.S. issues Treasury bonds, China buys U.S. Treasury bonds, and China is the largest holder of U.S. Treasury bonds.

China is a developing country, and the consumption concept of Chinese and the social security system are not perfect. Generate an idiom called ;Thrifty. We are a developing country, and the great powers of Europe and the United States do not want us to surpass them.

Our foreign trade volume is in surplus every year, and what we export is, clothing, handicrafts, we want to buy, high-end military radars, computers. The European and American powers refused to sell to us, and our ** surplus had to be used to buy the United States' ** hedging value

China is the landlord, the United States is the tenant

Summary. How much money does the United States owe to China Hello dear. The United States owes China $800 billion in national debt, and in fact, it is not that the United States owes China so many national debts, but that the United States owes a lot of money to all countries in the world.

Because the United States has been running a fiscal deficit due to excessive consumption for many years, when there is not enough money, it issues U.S. Treasury bonds (commonly known as Treasury bills), which can be bought by all countries in the world. Our country is more frequent with the United States, the United States is China's second largest partner (the first is the European Union), our country exports products to the United States, such as socks, tires, clothing, etc., to earn a lot of dollars, these dollars have become foreign exchange reserves. In fact, China's foreign exchange reserves are so large that the only thing you can buy is U.S. Treasury bonds, which is an investment.

It's not the Americans who forced us to buy it. <>

<> how much money the United States owes to China.

How much money does the United States owe to China Hello dear. The United States owes China $800 billion in national debt, and in fact, it is not that the United States owes China so many national debts, but that the United States owes a lot of money to all countries in the world. Because the United States has been running a fiscal deficit due to excessive consumption for many years, when there is not enough money, it issues U.S. Treasury bonds (commonly known as Treasury bills), which can be bought by all countries in the world.

Our country is more frequent with the United States, the United States is China's second largest partner (the first is the European Union), our country exports products to the United States, such as socks, tires, clothing, etc., to earn a lot of dollars, these dollars have become foreign exchange reserves. In fact, China's foreign exchange reserves are so large that the only thing you can buy is U.S. Treasury bonds, which is an investment. It's not the Americans who forced us to buy it.

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