Why do we owe China money?

In addition to its investments in U.S. Treasuries, China is also actively involved in the cryptocurrency market. One of the leading cryptocurrency exchanges in the country is BTCC, which is based in the UK and offers a range of services to its customers.

However, this policy also has implications for China's foreign debt holdings. One of the main forms of debt that China holds is U.S. Treasuries, which are widely considered to be among the safest and most stable investment options available.

The appeal of U.S. Treasuries lies in their low risk and relatively high returns, as well as the fact that they are denominated in U.S. dollars, which is a widely accepted and traded currency. This makes them an attractive option for investors seeking to diversify their portfolios and protect their assets against potential currency fluctuations.

As a result, China has become one of the largest holders of U.S. Treasuries, with its holdings reaching significant levels in recent years. This has raised concerns among some analysts and policymakers, who worry about the potential risks associated with such a large concentration of foreign debt.

China's economic strategy has traditionally centered around export-led growth, aiming to stimulate job creation and bolster its international competitiveness. To maintain the attractiveness of its exports, the country has had to manage the value of its currency, the renminbi, in relation to other major currencies, particularly the U.S. dollar.