gritpaladin

Jun 26 2011, 06:30 PM

Hope that US would struck a deal with China to keep out from Spratly Islands else US will withdraw its major investment in China and crippling its economy ... Also US would somehow realize that their heavy investments in China resulted to create a Regional Asian Monster Bully and continued its territorial claims and annexation.

Euro countries should follow by drastically lowering its heavy investments in China and shifting its business in ASEAN.  With economic progress in China at stagnant pace then their appetite for military might and power will stop....

Quote:

 

China Tops Japan in U.S. Debt Holdings


By Anthony Faiola and Zachary A. Goldfarb
Washington Post Staff Writers
Wednesday, November 19, 2008

China passed Japan to become the U.S. government's largest foreign creditor in September, the Treasury Department announced yesterday, reflecting the dramatic expansion of Beijing's economic influence over the American economy.

China's new status -- it now owns nearly $1 out of every $10 in U.S. public debt -- means Washington will be increasingly forced to rely on Beijing as it seeks to raise money to cover the cost of a $700 billion bailout. China, in fact, may be the government's largest creditor, period. The Treasury does not keep records on domestic bond holders. But analysts said China's holdings are so vast that the existence of a larger stakeholder in the United States now seems unlikely.

The growing dependence on Chinese cash is granting Beijing extraordinary sway over the U.S. economy. Analysts say a decision by China to move out of U.S. government bonds, for economic or political reasons, could lead a herd of other investors to follow suit. That would drive up the cost of U.S. borrowing, jeopardizing Washington's ability to fund, among other things, a stimulus package to jump-start the economy. If China were to stop buying or, worse, start selling U.S. debt, it would also quickly raise interest rates on a variety of loans in the United States, analysts say.

Additionally, the more China invests in U.S. debt, the harder it becomes for U.S. companies to sell their products overseas. That's because China's purchase of U.S. bonds makes the dollar stronger, particularly against the Chinese yuan, which has been kept artificially weak to boost Chinese exports. The relatively weak yuan remains one of the biggest obstacles to U.S. companies tapping the market in China, particularly lucrative now as Beijing embarks on $586 billion in infrastructure and other stimulus spending to keep its economy humming amid the global crisis.

The rest of article here.

Quote:

 

China's investment in U.S. Treasury bonds surged by $43.6 billion to $585 billion in September, pulling ahead of the Japan, which now holds $573.2 billion worth. Overall, analysts say China's holdings may be $800 billion or more. China is thought to be purchasing U.S. debt through third countries, purchases that are not immediately recorded by the Treasury as being held by China, analysts say.

spearhead

Jun 26 2011, 09:25 PM

^^

This is the reason why the US cannot just simply mess around with Beijing:

"This is an unhealthy relationship," said Brad W. Setser, geoeconomics fellow at the Council on Foreign Relations. "The U.S. relies too heavily on subsidized financing from a non-democratic government. And China is still a poor country that has in turn invested too much of its national savings in the United States. There remains an underlying financial vulnerability if China were to scale back its purchases. It could deliver a shock to the United States."

Quote:

 

China Tops Japan in U.S. Debt Holdings


By Anthony Faiola and Zachary A. Goldfarb
Washington Post Staff Writers
Wednesday, November 19, 2008

China passed Japan to become the U.S. government's largest foreign creditor in September, the Treasury Department announced yesterday, reflecting the dramatic expansion of Beijing's economic influence over the American economy.

China's new status -- it now owns nearly $1 out of every $10 in U.S. public debt -- means Washington will be increasingly forced to rely on Beijing as it seeks to raise money to cover the cost of a $700 billion bailout. China, in fact, may be the government's largest creditor, period. The Treasury does not keep records on domestic bond holders. But analysts said China's holdings are so vast that the existence of a larger stakeholder in the United States now seems unlikely.

The growing dependence on Chinese cash is granting Beijing extraordinary sway over the U.S. economy. Analysts say a decision by China to move out of U.S. government bonds, for economic or political reasons, could lead a herd of other investors to follow suit. That would drive up the cost of U.S. borrowing, jeopardizing Washington's ability to fund, among other things, a stimulus package to jump-start the economy. If China were to stop buying or, worse, start selling U.S. debt, it would also quickly raise interest rates on a variety of loans in the United States, analysts say.

Additionally, the more China invests in U.S. debt, the harder it becomes for U.S. companies to sell their products overseas. That's because China's purchase of U.S. bonds makes the dollar stronger, particularly against the Chinese yuan, which has been kept artificially weak to boost Chinese exports. The relatively weak yuan remains one of the biggest obstacles to U.S. companies tapping the market in China, particularly lucrative now as Beijing embarks on $586 billion in infrastructure and other stimulus spending to keep its economy humming amid the global crisis.

The rest of article here.

pachador

Jun 26 2011, 09:01 AM

The AFP has long drawn up a list of equipment it needs to operate effectively in the country’s Exclusive Economic Zone that encompasses the Philippine claims in Spratly Islands.

They include long-range maritime surveillance aircraft, bigger ships (similar to the Hamilton-class all-weather cutter from the U.S. Coast Guard that is now on its way to join the Philippine Navy), and anti-aircraft radars and weapons, among others.

http://www.abs-cbnnews.com/-depth/06/25/11...er-spratlys-row