Actually, China didn't have much choice BUT to buy US Treasuries with their current account surplus. Investopedia has a good overview of the dynamic here: http:

Actually, China didn't have much choice BUT to buy US Treasuries with their current account surplus. Investopedia has a good overview of the dynamic here: http://www.investopedia.com/articles/investing/040115/reasons-why-china-buys-us-treasury-bonds.asp http://www.investopedia.com/articles/investing/040115/reason... Plenty of links from there to get you acquainted with the terminology.