What It Means to YouChina is sending a warning message to the U.S. to cut back on the U.S. debt, which is at $11.4 trillion and rising. China is also negotiating currency swaps with other G-20 trading partners, such as Hong Kong and Argentina, reducing its reliance on the dollar for international trade. As China's need for the dollar declines, so will its appetite for Treasuries. This could cause interest rates to rise, hampering the revival of the U.S. housing industry.
What do you think? Share your opinion at the U.S. Economy Forum
Photo: Chinese Premier Wen Jiabao (Credit: Liu Jin/Getty Images)