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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: jlallen who wrote (892196)	10/7/2015 9:37:46 PM
From: TimF	Respond to of 1576806

If they sell their treasuries what are they going to do with their dollars? They can buy something in or from the US, or sell it to someone else who busy something in/from the US. Its not just a matter of their current dollars either. As long as they have a bilateral trade surplus they will have more dollars to deal with, also dumping treasuries without buying anything else, just holding the money, would tend to push the dollar down and make Chinese imports more expensive. If they sell less, that supports fewer jobs in China, and since they are still and export oriented economy (if not quite as much as in the past) it will hit Chinese economic growth. Their government relies a lot on economic growth to maintain political stability.