China Economy Weekly: Trade Battles with US, Power to Tibet, Investing In General Motors
Thursday, September 23, 2010 at 9:59
Beijing Buys More US Debt: China slightly increased its holdings of US Treasury debts in July, to $846.7 billion, after two months of net sales.
The news allayed concerns that Washington's largest creditor was moving away from investing in dollar assets.
Coincidentally, the debt data came out as two US Congressional hearings were being held on China's exchange rate policy.
The hearings were attended by Treasury Secretary Timothy Geithner, who acknowledged that the two countries "have significant economic interests" in their relationship and highlighted the importance of the Chinese market on the US economic recovery. However, he expressed dissatisfaction with the pace of the yuan's appreciation.
China responding by warning that obsessing over yuan appreciation would not solve trade problems in the US and "might make things even worse"