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.

The 2012 version of Key Asian Indicators: A Book of Charts is now available at heritage.org. Follow the link to access this helpful resource and get information on everything Asia—trends on political/security issues, data on Asia’s fastest growing economies, Asia’s top investors in the U.S. economy, and the real numbers on who owns the most U.S. Federal debt.

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