Hmm, I read elsewhere that China used their trade gap and surplus funds to buy U.S. Treasuries. Last I read, there was about $800 billion worth of it. Of course, because of the weak dollar, it isn't actually worth as much if they tried to cash it in now. I think they're shifting tactics and buying up U.S. businesses instead, and at a discount (again, due to out weak dollar).
Politically, it's a charged issue, with some seeing it as some kind of looming menace taking over, but.... economically, we seem to be more joined at the hip than at first glance.
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