On February 22nd in Beijing, Hillary Clinton, our new Secretary of State, has been trying to persuade China to keep investing in U.S Treasury using substantial foreign exchanges. Before the current economic situation, China was helping America's spending. This was because china was America's biggest foreign holder. People are concerned that because of all the money Chinese substantial holding, America has more leverage deals with Washington. This also makes it difficult to finance their stimulus plans and government bailout plan every time a Chinese item is bought. Glenn Kessler, a writer of the Washington Post has said that: "Clinton, in unusually direct comments on an interview with China's Dragon TV before returning to Washington, said that reality made it an imperative for China to keep purchasing U.S. Treasury bonds, because otherwise the U.S. economy will not recover and China will suffer as well. ". Something I wonder is that IN WHICH WAY would the economy suffer if China does not invest in U.S Bonds. Clinton has also said that because of America and China's interconnections, they will either rise, of fall together. I wonder what China's decision will finally be.
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