Here is not up to date graph of how China is getting out of US Treasury paper, as I predicted they would 6 or so years ago, as part of the plan to eventually destroy the dollar, if it has not already collapsed, by backing RMB bonds with gold. I.e. they want to reduce the size of their ONE TIME loss on Treasury paper for the EVERY YEAR saving on growing import costs with US & EU in depression and not buying competitors keeping import cost high. Of course the greater benefit is China gets to pay for its imports with printed paper, as US has done for more than two decades. Please Register or Log in to view the hidden image! The other main thing China must do, and is rapidly doing, is to reduce the fraction of its exports going to US & EU as it grows exports to others by ~ 20 + or - 10% each year. From memory: only 15% of China's exports now go to the US. - China only needs a year or two more before it can tell the US: Go to Hell. We don't need to sell to you anymore. So we will no longer finance your debts.