China “Owns” the U.S.: Fact or Fiction?

There is a common misconception that China “owns” the U.S by holding the majority of U.S. federal debt. Contrary to this belief, as a region, Asia owns only 20 percent of U.S. federal debt, with China holding less than 10 percent ($1.3 trillion) and Japan owning approximately 6 percent ($882 billion).

American citizens and now, unfortunately, the Federal Reserve are the primary holders of U.S. federal debt. The U.S. urgently needs to get its fiscal house in order. It has too much debt, period. The relatively minor share of it owned by China is not the problem.

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