Buying U.S. Treasury bonds is a win-win result between China and the United States, or a second-best choice before there is no best choice at this stage. To put it bluntly, buying US Treasury bonds means that China earns too much US dollars by exporting foreign trade (that is, the world factory), and China has foreign capital, all of which are introduced in US dollars; In order to preserve and increase the value, China will buy US Treasury bonds.

Buying US Treasury bonds can reduce the pressure of RMB appreciation; Conducive to our exports and increase our employment!

The first power in the United States has the highest national credit; Buying US Treasury bonds is the safest; At the same time, the American financial market is developed and trading is free; Convenient for us to buy and sell! There is also fixed income; Buy American debt in dollars, don't worry about exchange rate risk! Therefore, U.S. Treasury bonds are the safest and the income is stable, so you can't buy Iraqi government bonds!

We hold a large amount of American debt, which can make the United States stop fooling around and let them consider the feelings of our investors, such as not telling monks about things across the Taiwan Strait!

Disadvantages:

Even the yield of US Treasury bonds is very low. If the dollar depreciates, our foreign exchange assets will shrink in turn. There is not much China can do. It can only increase imports, reduce exports and increase domestic consumption through appreciation.

References:

Please indicate the source of the old uncle's works in cornfield!