U.S. media says China is eager to buy more Treasuries

Global network reporter Zongze reported that the U.S. Treasury March 1 announced the state purchase of U.S. government debt in the latest revised data. As of December 2010, China remained the largest creditor country in the United States, with US Treasuries revised at $1.1601 trillion trillion at the end of February this year.　　The US Wall Street Journal said March 1 that China has not only not reduced its holdings of U.S. Treasuries, but "still wants to buy more Treasuries", a relief to those worried about "China hates America". The report also quotes strategic experts as saying, "This is good news for the US dollar and the Treasury." "China has not discarded US Treasuries," said Kathy Lien, director of monetary studies at GFT, a well-known US foreign exchange broker. Many say China will continue to diversify its foreign-exchange reserves, but diversification does not mean they will stop buying dollars. "The suspicion that China will withdraw from US dollar investments is exaggerated, and the scale of China's foreign exchange reserves is vastly overvalued," said Alan Ruskin, the top head of Deutsche Bank's strategy for foreign exchange reserves. The report said the latest revised data from the US Treasury show that China still holds nearly one-third of US Treasuries. "The data will be good for the dollar and the US Treasury, especially when some countries want the U.S. fiscal situation to worsen," said John Briggs, a dollar rate strategist at RBS. When it comes to discussing the U.S. fiscal deficit and the sustainability of these deficits, investors will be looking at the dollar's holding rate. But as of now, Treasury figures show that the dollar is supported. The report commented that if China decides to reduce its holdings of Treasuries, it will also be "gradual" and has little impact on the U.S. debt market.