While 5.5% of the national debt isn't exactly insignificant, the Treasury Department has had no problems finding buyers for its products even after a rating
downgrade. If the Chinese suddenly decided to call in all of the federal government's obligations (which isn't possible, given the maturities of debt securities), it is very likely that others would step in to service the market. This includes the Federal Reserve, which already owns more than twice as much debt as China.
Second, the Chinese rely on American markets to buy Chinese-produced goods. Artificially suppressing the yuan has made it difficult for a growing Chinese
middle class, so exports are needed to keep businesses running.
Read more:
China Owns US Debt, but How Much? | Investopedia China Owns US Debt, but How Much?
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