How much money does the United States lend to China? Treasury bonds .

According to the latest International Capital Flows Report (TIC) released by the U.S. Treasury Department on July 16, China's holdings of U.S. Treasury bonds amounted to $801.5 billion by the end of May this year. It is the largest creditor of the United States.

Treasury bonds, of course, have interest. What to do with buying it without interest? We can't help it. Huge external surpluses every year. A large number of dollars in hand with depreciation. And he didn't have that much to buy him. You can only buy treasury bonds, and at least you can have a little interest.

China is the second-largest creditor of U.S. Treasuries.

After the subprime mortgage boom, many countries suddenly realized that risking "an irretrievable sharp depreciation of dollar assets" in order to return a meagrely5 US Treasuries was not a good investment in any case. As the subprime mortgage black hole grows larger, central banks are struggling to keep dollar assets. According to a recent report released by the U.S. Treasury Department, the number of U.S. Treasury bonds held by some countries has been gradually declining since the beginning of this year.

Among them, the U.S. Treasury Bond is the first.

First, the second largest holdings of Japan and China began to decline in July last year. Fifteen of the 27 major overseas economies counted by the U.S. Treasury are in U.S. Treasuries. In addition to Japan, Russia, China, France, Caribbean countries, as well as Taiwan and Hong Kong are also stronger.

Although the United Kingdom, Brazil and other countries have increased their holdings, and China has recently increased some US Treasuries, it seems to have become a general trend.

Among the top 20 major overseas holders of U.S. Treasuries, Norway and Ireland have resolutely "liquidated" their positions.

The depreciation of the US dollar is the main reason.

According to the analysis of the British "Daily Telegraph" report in March, in the past period, the US Treasury bond yield has sharply caused some concerns.

Since March this year, it has been reported that the sell-off in US Treasuries is directly related to the depreciation of the dollar. Analysts said that the Fed is expected to cut interest rates again this year, and people are worried that if the Fed cuts interest rates further, it may lead to the US dollar exchange rate continuing to ** in the next 3 to 6 months, and the US dollar will continue to depreciate.

Analysts believe that the continued depreciation of the dollar has dampened the enthusiasm of overseas central banks to hold US bonds, which is why some countries are quietly withdrawing funds from the United States, thus weakening the dollar even more.

Rainey, chief foreign exchange strategist at Australia's Westpac Bank, said that economies with more US dollar foreign exchange reserves are skeptical of the return on US debt investments, and more and more sovereign wealth** has been created to diversify investments, such as mainstream currencies such as the euro. He said that any ** in the current dollar will become a "selling opportunity" in the eyes of people.

Qu Hongbin, chief economist of HSBC China, believes that the trend of overseas central banks chasing higher-yield assets has become more and more obvious. In recent years, diversification of foreign exchange reserves has become a trend around the world. China has been advocating for the diversification of its foreign exchange reserves since the beginning of 2006, and there have been many moves in this regard, and it is only natural that this will happen against this backdrop.

About $800 billion. Treasury bonds, of course, have interest.

China has already bought $1 trillion in U.S. Treasury bonds. Second only to Japan. Treasury bonds, of course, have interest.

It's like $800 billion, with interest, of course.

Of course, there is interest on national bonds, and of course the United States also pays the principal when due, which is different from borrowing money.

Half of the United States is our China

This question is not made clear all at once, because they borrow all the time!

I didn't borrow at all, it was the treasury bonds of the people who bought it, and the investment behavior was not borrowing.

China holds trillions of dollars in U.S. bonds.

Billions of dollars in interest can be earned every year. From this point of view, U.S. Treasuries are indeed the world's highest-yielding and safer national bonds.

The United States pays China $100 million in interest a year, and the United States pays Japan even more. In December 2020, Japan's total holdings of U.S. bonds amounted to one trillion U.S. dollars, and Japan is the largest overseas holder of U.S. bonds, and the United States needs to pay Japan $20.1 billion in interest every year.

Extended Information] China's purchase of U.S. Treasury bonds.

Don't let a small be a big one. Unless Sino-US relations.

Changes, the Taiwan issue.

Otherwise, it is too risky for China to buy US Treasury bonds.

China's purchase of U.S. Treasury bonds and its becoming a creditor of the United States are caused by historical reasons. China's large-scale purchase of U.S. Treasury bonds began in 2008 with a financial crisis. U.S. Federal**.

To save Wall Street investment banks.

Treasury Secretary Paulson went to Beijing to ask China** to support the U.S. fiscal plan.

China began buying U.S. Treasury bonds on a massive scale in order to help the U.S. federal government tide over the storm. The U.S. federal** acquisition of Wall Street investment banks and the injection of capital into them enabled Wall Street investment banks to quickly get out of trouble and turn losses into profits. Except for Lehman Brothers.

In addition to refusing to accept U.S. federal funding** and declaring bankruptcy, other U.S. investment banks turned the corner. However, instead of thanking China for its help, the United States has intensified its efforts and imposed sanctions on China, and Sino-US relations have taken a sharp turn for the worse.

China remains the second largest creditor of the United States. Not only that, but in the first quarter of 2021, China bought a large number of US Treasury bonds. Theoretically, this is incredible.

However, from a financial operational point of view, this is normal. When China buys U.S. Treasury bonds, it does not buy Treasury bonds directly from the U.S. federal government, but through the international bond market. China is buying U.S. Treasury bonds not to support the U.S. federal bailout, but to obtain higher yields.

As people know, due to the increase in the yield of long-term US federal Treasury bonds, it is possible to obtain higher yields by using the international financial market to buy US Treasury bonds. The usual practice is to engage in trading in the market, buy Treasury bonds with relatively high interest rates, and hedge off Treasury bonds with relatively low interest rates, so that China can buy US Treasury bonds to get more yields. This is a typical market operation, and it is also a necessary move for China's foreign exchange management institutions to obtain and recover income from the international bond market.

The annual yield of the 10-year U.S. Treasury bond is about 3, and the annual interest on $1 trillion U.S. Treasury bonds is about $30 billion, which means that the United States needs to pay about $30 billion in interest on China's U.S. bonds every year.

Of the $24.5 trillion in United States national debt, about $7,07 trillion is held by foreign investors. Of these, Japan holds $1,26 trillion and China holds $1,09 trillion.

Since the outbreak of the new coronavirus, Trump and Pompeo have been blaming China, saying that China should be responsible for the new crown epidemic, and even Trump has thrown out the rhetoric of claiming compensation from China. Some US congressmen have even proposed that the obligation to repay China's national debt should be abolished. Of course, it is impossible for us to be frightened by these remarks of the United States, and if we are afraid of selling US Treasury bonds sharply, we will ultimately suffer losses.

At present, China holds trillions of dollars in US Treasury bonds, China is the largest creditor of the United States, the second largest creditor of the United States is Japan, which holds trillions of US dollars, and China and Japan hold more than one-third of the total US Treasury bonds held by major foreign creditors.

According to data released by the U.S. Treasury Department, China's holdings of U.S. Treasury bonds fell to one trillion dollars as of 2020. China's holdings of U.S. debt fell by $9.3 billion, making it the country with the largest decline in U.S. debt, but China remains the second largest creditor of the United States. As of now, the debt of the United States is trillions of dollars, and the ratio of GDP to GDP is very close, which is very close to the internationally recognized warning line of 120%.

According to the U.S. Treasury Department's September 2022 International Capital Flows Report (TIC), as of September 2022, Chinese mainland's holdings of U.S. Treasury bonds amounted to US$933.6 billion, and its total holdings fell to its lowest level since June 2010.

If some military fans question how much money does the United States owe China? Then, according to the appalling claims given by Western experts, at least a trillion dollars are owed. In this regard, some military fans said that now that the United States has signed a sky-high IOU, once the war starts, without a single soldier, China only needs to sell these bonds, which can quickly paralyze the United States.

Now in China's hands, there are a lot of US Treasury bonds, the amount of which has reached a certain level, as long as China moves now and sells these things, it will have a great impact on the international market, so that it will directly lead to a huge change in the international market.