China's Holdings of U.S. Securities: Implications for the U.S. Economy

Description:

This report examines the importance to the U.S. economy of China's investment in U.S. securities, as well as U.S. concerns over the possibility that China might unload a large share of those holdings, including the likelihood that this would occur, and the potential implications such action could have for the U.S. economy. The report concludes that a large sell-off of Chinese Treasury securities holdings could negatively affect the U.S. economy, at least in the short-run. As a result, such a move could diminish U.S. demand for Chinese products and thus could lower China's economic growth as well.

Creator(s):
Location(s):
Creation Date: February 27, 2008
Partner(s):
UNT Libraries Government Documents Department
Collection(s):
Congressional Research Service Reports
Usage:
Total Uses: 67
Past 30 days: 11
Yesterday: 0
Creator (Author):
Morrison, Wayne M.

Specialist In International Trade and Finance Foreign Affairs, Defense, and Trade Division

Creator (Author):
Labonte, Marc

Specialist in Macroeconomic Policy Government and Finance Division

Publisher Info:
Place of Publication: Washington D.C.
Date(s):
  • Creation: February 27, 2008
Coverage:
Place
China
Place
United States
Description:

This report examines the importance to the U.S. economy of China's investment in U.S. securities, as well as U.S. concerns over the possibility that China might unload a large share of those holdings, including the likelihood that this would occur, and the potential implications such action could have for the U.S. economy. The report concludes that a large sell-off of Chinese Treasury securities holdings could negatively affect the U.S. economy, at least in the short-run. As a result, such a move could diminish U.S. demand for Chinese products and thus could lower China's economic growth as well.

Physical Description:

16 pages.

Language(s):
Subject(s):
Partner:
UNT Libraries Government Documents Department
Collection:
Congressional Research Service Reports
Identifier:
Resource Type: Report
Format: Text