As the US continues to issue debt obligations (why live within our means), China continues to pony up to collect our debts and thus hold our future in their hands.
We can look for China to continue to buy a hefty portion of America’s Treasuries.
Beijing holds about 15% of Washington’s debt, the second-biggest owner among foreign creditors (after Japan).
But while it’ll remain a major lender; China can’t easily extort the U.S. by threatening to dump its holdings of Treasuries. Global demand for our liquid, safe bonds would still be ample.
In essence they can control our future, or aspects of it. It is worrisome