China’s $1.5 Trillion Bet

Understanding China’s External Portfolio

Report by Brad W. Setser and Arpana Pandey

May 2009 , 22 Pages

Download PDF

Report

Overview

This is an update to the January 2009 Working Paper China’s $1.7 Trillion Bet. Download the original paper [PDF].

Brad W. Setser

Whitney Shepardson Senior Fellow

Arpana Pandey

China is now by far the United States’ largest creditor. Its treasury portfolio recently surpassed that of Japan’s, and it has long held more agency (Fannie Mae, Freddie Mac) bonds than any other country. Never before has a nation as poor as China provided so much financing to a country as rich as the United States. In this Center for Geoeconomic Studies Working Paper, Brad W. Setser and Arpana Pandey estimate the true scale of China’s U.S. portfolio and examine how the pace of growth and composition of China’s portfolio have evolved over time.

Explore More on China

Trade

What Are Tariffs?

U.S. Presidents Trump and Biden have both turned to tariffs to support local industries amid economic confrontation with China. Here’s how these taxes work and how they’ve been used historically.

Backgrounder by Andrew Chatzky, Anshu Siripurapu and Noah Berman June 21, 2024 Renewing America

China

Religion in China

A significant proportion of China’s population claims to follow a religion. However, the government continues to toughen oversight, increase persecution of some religions, and attempt to co-opt state-sanctioned religious organizations.

Backgrounder by CFR.org Editors May 15, 2024

Trade

The Contentious U.S.-China Trade Relationship

Trade between the world’s two biggest economies has ballooned in recent decades, bringing significant benefits but also perils that have led to calls to rethink the relationship.

Backgrounder by Anshu Siripurapu and Noah Berman May 14, 2024

Overview

Explore More on China

Top Stories on CFR