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China has $1.95 Trillion in foreign exchange reserves and is the largest holder of US government debt. It holds about $696.2 billion of US Treasuries.
US Secretary of State, Hillary Clinton, went to China and asked the Chinese directly what their policy is toward the purchase of our debt. Secretary Clinton emphasized the interconnectedness of our two economies. Clinton said: "It would not be in China's interest if we were unable to get our economy moving again." She went on to say: "We are truly going to rise or fall together."
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