Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Often this is a "Win-Win" for both importers of foreign goods (US) and exporters of these goods. Surpluses don't all come back into the exporting country, instead they are settled off shore temporarily as US Treasuries. The buying of US Treasuries also has a tendency to lower US interest rates as well as weaken the US dollar.
Comments
I will find the article that explains this more clearly.
Here's a quick find:
The Chinese perspective:
henryckliu.com/page215.html
America Financial War Strategy:
America’s financial war strategy
How Dangerous Is U.S. Government Debt?
cfr.org/financial-crises/dangerous-us-government-debt/p22408
The Reasons Why China Buys U.S. Treasury Bonds
investopedia.com/articles/investing/040115/reasons-why-china-buys-us-treasury-bonds.asp
Often this is a "Win-Win" for both importers of foreign goods (US) and exporters of these goods. Surpluses don't all come back into the exporting country, instead they are settled off shore temporarily as US Treasuries. The buying of US Treasuries also has a tendency to lower US interest rates as well as weaken the US dollar.