2 ms·

They bought US debt because they are confident the US will pay it off, it’s a ROI? Not to attract capital…

• fuoqi 4y ago
  No. They bought it because the excess capital produced by artificially low exchange rate used to stimulate domestic production and exports is too big to be parked anywhere else.
  • ChatGTP 4y ago
    They didn't think it would lose money though, right?
    • fuoqi 4y ago
      With negative real interest rates they DO lose purchasing power and I think they thought about such risk. But making China a production powerhouse and technology transfer associated with it was a much more important goal.