Reality Check: China Now Owns a Record $1.317 Trillion of U.S. Government DebtPosted: January 16, 2014
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…
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- Beijing’s Treasury holdings climb to record $1.317 trillion (wnd.com)