Reality Check: China Now Owns a Record $1.317 Trillion of U.S. Government Debt

chinese-flag-national

Matt Egan  reports:  China stepped up its purchases of U.S. government debt late last year, increasing its holdings of Treasurys to an all-time record of $1.317 trillion in November, government data released this week revealed.

The statistics underscore how reliant the U.S. and Chinese economies are on one another even as political tensions occasionally emerge.

According to figures inadvertently released Wednesday evening on the U.S. Treasury Department website, China’s holdings of Treasurys increased by 0.9% in November to $1.317 trillion, up from $1.305 trillion in October. Year-over-year, China’s holdings rose 11.3% from $1.183 trillion.

The $1.317 trillion figure exceeds China’s previous record high in July 2011 of $1.315 trillion, according to the government data.

China’s appetite for government debt has been driven by its huge amount of foreign-exchange reserves, which surged to a record of $3.82 trillion at the end of 2013. The demand for Treasurys does not appear to have been seriously eroded by concerns about the U.S. fiscal situation.

In recent months, the U.S. has managed to slash the federal deficit thanks to higher tax revenue and payments from Fannie Mae and Freddie Mac. Earlier this week, the government revealed a budget surplus of $53 billion in December…

Read the rest…

Fox Business

Follow Matt Egan on Twitter @MattMEgan5


2 Comments on “Reality Check: China Now Owns a Record $1.317 Trillion of U.S. Government Debt”

  1. […] Reality Check: China Now Owns a Record $1.317 Trillion of U.S. Government Debt (punditfromanotherplanet.com) […]


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.