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How much debt of U.S to China?

The U.S. debt to China is $1.241 trillion as of June 2016, thebalance.com said. China holds less U.S. debt than the record $1.317 trillion it held in November 2013. It reduced its holdings to allow its currency, the yuan, to rise. It's loosening its peg to the dollar.

That will make the yuan more attractive to forex traders in global markets. Long-term, China wants the yuan to replace the U.S. dollar as the world's global currency. China is also responding to accusations of manipulation.


In February 2014,  China reversed course and began weakening its currency again. That's because it rose 25% in 2014 and 2015. The yuan's value is not completely free from the dollar's value. China needed to lower the yuan to remain competitive with other emerging markets. Their currencies were free-floating. For more, see Asset Bubble and Yuan to Dollar Conversion.

China has consistently held more than $1 trillion in U.S. debt since 2010. That's when the Treasury Department changed how it measures the debt. Before July 2010, Treasury reports show China held $843 billion in debt. That makes it difficult to make long-term comparisons. 
 Source: thebalance.com

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