China holds 1.6 trillion dollars of US debt: Treasury Department

March 2nd, 2011 - 6:37 pm ICT by ANI  

Barack Obama Beijing, Mar.2 (ANI): China, the largest creditor of the United States, holds 1.6 trillion dollars of US debt, according to Treasury Department data.

According to the Treasury Department, China’s total investments was 1.16 trillion dollars at the year end, whereas it was 891.6 billion dollars in the previous year.

Japan is second-largest lender to the US, with 882 billion dollars of treasuries at the year-end, compared with 884 billion dollars before the revision.

Britain is the third largest lender to the US. Its investment was revised down to 272.1 billion dollars from 541.3 billion dollars.

Overseas investors own about half of the record 8.96 trillion dollars in US publicly traded debt, and President Barack Obama needs them to keep buying as he borrows to sustain the expansion.

The China Daily quoted Kazuaki Oh’e, a debt salesman in Tokyo as saying: “They will keep on buying Treasury bonds, the euro was in trouble last year. They need to buy dollar assets.”

Chinese President Hu Jintao told business executives in Washington that closer ties between China and the US were critical amid a “tortuous” global economic recovery.

The Asian nation’s treasury holdings climbed amid a bond-market rally. US debt gained from April through September before handing investors a loss in the fourth quarter of last year.

The Chinese officials had been saying they wanted to seek investments outside the US. (ANI)

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