China International Political Economy

The Chinese government announced it will continue to buy U.S. Treasury bonds from the United State the largest China trade partner according to Reuters.

The vice governor of the People’s Bank of China, Hu Xiaolian, stated clearly that the further investment in US treasuries is an integral part of the Chinese government’s foreign exchange reserve management strategy.

While the news is positive, there is a growing concern that the Chinese government is losing interest in US treasuries as the global economic crisis continues to discredit American capitalism.