China Buying Debt

Chinese Renminbi Yuan

China is buying debt:

BEIJING: China has bought $three-billion more worth of US treasury debt and expanded the scope of imports from the US in what are seen as measures that will result in the yuan appreciating against the US dollar — a key demand of the Obama administration.

China’s holdings of treasury bonds rose $846.7 billion in July after two months of decline, the state-run China Daily has reported.

The news allayed concerns that Washington’s largest creditor China was moving away from investing in dollar assets, it said.

Coincidentally, the debt data came out at the same time as two congressional hearings were being held in the US on China’s exchange rate policy of pegging the value of Yuan far lower to dollar than its perceived strength. (The Hindu Business Line, September 18, 2010. http://www.thehindubusinessline.com/businessline/blnus/10181401.htm)

The purchase probably was not a coincidence as China takes steps to affect USA policy, especially if the USA is discussing the yuan.

While purchase of Japanese debt by the Chinese has alarmed the Japanese, the USA seems to relish these purchases (the Japanese are also still buying US debt). The Japanese have essentially realized that when China buys Japanese debt, this strengthens the value of the Japanese yen and makes it easier for the Chinese companies that use its yuan to compete against Japan. And when the Chinese buy US dollar debt, that also strengthens the value of the US dollar and allows Chinese companies to more effectively compete against US ones.

The Chinese have other reasons for buying USA debt, including wishing to be able to better influence US foreign policy as well. And it has used that power on more than one occasion already. But the USA still keeps selling debt to China.

Some articles of possibly related interest may include:

China, Its Biblical Past and Future, Part 1: Genesis and Chinese Characters This article provides information showing that the Chinese peoples must have known about various accounts in the Book of Genesis up until their dispersion after the Tower of Babel.
China, Its Biblical Past and Future, Part 2: The Sabbath and Some of God’s Witness in China When did Christianity first come to China? And is there early evidence that they observed the seventh day sabbath?
Asia in Prophecy What is Ahead for China? Is it a “King of the East”? What will happen to nearly all the Chinese, Russians, and others of Asia? China in prophecy, where?
Japan, Its Biblical Past and Future, Part 1: Any Witness? Where did the Japanese people come from? Have they had any witness?
Japan, Its Biblical Past and Future, Part 2: Prophecy Japan in prophecy. What is prophesied for Japan? Will God save the Japanese?
Anglo – America in Prophecy & the Lost Tribes of Israel Are the Americans, Canadians, British, Scottish, Welsh, Australians, Anglo-Southern Africans, and New Zealanders descendants of Joseph? Where are the lost ten-tribes of Israel? Who are the lost tribes of Israel? Will God punish the U.S.A., Canada, United Kingdom, and other Anglo nations? Why might God allow them to be punished first?
Will the Anglo-Nations be Divided? Will the lands of the United States, United Kingdom, Canada, Australia, and New Zealand be divided? What does Bible prophecy teach? Are there non-biblical prophecies that support this idea? Who will divide those lands? Who will end up with the lands and the people?