The US has trade deficits with China amounting to several hundred billion dollars each and every year. This means annually there is several hundred billion USD flowing into Chinese hands.

These Chinese individuals and firms could: 1. keep this money in the bank account 2. buy US treasuries 3. buy some other USD denominated assets?

Do we have any idea what percentage goes into Treasuries, what percentage stays in cash and what percentage goes into other assets? - indeed what other assets might be purchased?

Any colour would be appreciated. Thank you.

  • $\begingroup$ Some of it is used to buy stuff or services from other countries, such as oil or iron ore or semiconductors or education or tourism $\endgroup$ – Henry May 27 '18 at 13:53

Your Answer

By clicking "Post Your Answer", you acknowledge that you have read our updated terms of service, privacy policy and cookie policy, and that your continued use of the website is subject to these policies.

Browse other questions tagged or ask your own question.