By Floyd Norris
The New York Times
December 22, 2007
But according to United States government figures, China reversed course in 2007 and has become a net seller of Treasury securities. The Treasury said this week that China had $388 billion in Treasuries at the end of October, slightly less than it had at the end of 2006.The sales, if the American estimates are correct, have come in a year when the dollar has been weak against most currencies. The sales would be consistent with China’s diversifying its investments into other currencies.
But the figures may be misleading.
For one thing, other Treasury estimates show that the Chinese are still increasing their holdings of bonds issued by quasi-government agencies, like Freddie Mac and Fannie Mae, and by American companies.
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