Thursday, July 14, 2011
China's Money Surpluses And Investments The Next Big Threat To U.S.-China Ties
The United States is so far lacking a strategy for managing future Chinese investment. With Beijing pushing for more access to its high tech sector, it needs one.
The United States and China have long lobbed verbal grenades across the Pacific, each blaming the other for global imbalances due to currency manipulation or fiscal irresponsibility. But a new challenge to Sino-US relations is emerging, one that will brush aside the bones of contention that now occupy policymakers – Chinese investment in the United States.
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My Comment: With reserves over $3 trillion USD, the Chinese have a lot of leverage. Buying U.S. Treasury bills is one thing, but what happens when they start buying Boeing, Lockheed, Intel, Northrop Grumman, etc..
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