China's holding of US Treasury bonds is a win-win situation for China and the United States. To put it bluntly, buying U.S. Treasury bonds means that China earns too much dollars by exporting (that is, the factory of the world). The factory takes the earned dollars to the bank and converts them into RMB, paying workers' wages, raw material expenses and other expenses. However, in order to preserve and increase the value of the dollar, it is necessary to invest abroad. China will buy American bonds, which are the safest and most stable, so we can't buy Iraqi bonds! We lend money to the United States, which can afford to consume things, so we will continue to import our products. Our factory can start more jobs, attract employment, purchase raw materials and so on.

The United States is the only superpower in the world, ranking first in military, science and technology and finance. Its national debt has the highest security and the best liquidity. If China doesn't buy it, Japanese and Middle Eastern oil countries will also buy US Treasury bonds. Of course, with the depreciation of the dollar, China's dollar foreign exchange assets have shrunk, but if it does not buy US Treasury bonds, the shrinkage will be more serious; If the dollar rebounds, it may reduce the shrinkage of assets. Therefore, buying US Treasury bonds is a last resort, and it is impossible to buy stocks. In this way, the risk is too high. What if you lose money? Look at China's stock market, which has dropped from 6,000 points to more than 2,000 points. How much has the asset shrunk? There are also many QDII funds that invest overseas in China, which are losing more or less. If we buy industrial resources, such as iron ore and oil, China will buy more things. Now I don't know how much the prices of these things have gone up, because international speculators are speculating on the concept of China.