How MuchU.S.Debt DoesChina Really Own?
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President Barack Obama shakes hands with Chinese President Hu Jintao.Photo Credit: Feng Li/Getty Images News/Getty Images
TheU.S.debt was more than$14.3 trillion during the so-calleddebt crisis of 2011, when the level of borrowing reached itsstatutory limit and the president warned of a potentialdefault if the cap wasn't raised.
See also:5 Presidents Who Raised theDebt Ceiling
So who owns all thatU.S.debt?
About 32 cents for every dollar ofU.S.debt, or $4.6 trillion, is owned by the federal government in trust funds, for Social Security and other programs such as retirement accounts, accordingto theU.S. Department of Treasury.
China andU.S.Debt
The largest portion ofU.S.debt, 68 cents for every dollar or about $10 trillion, is owned by individual investors, corporations, state and local governments and, yes, even
foreign governments
such asChina that holdTreasury bills, notes and bonds.
Foreign governments hold about 46 percent of allU.S.debt held by the public,more than $4.5 trillion
. The largest foreign holder ofU.S.debt isChina, which owns more about $1.2 trillion in bills, notes and bonds, accordingto the Treasury.
In total,China owns about 8 percent of publicly heldU.S.debt. Of all the holders ofU.S.debtChina is the third-largest, behind only the
Social Security Trust Fund's holdings of nearly $3 trillion and the
Federal Reserve's nearly $2 trillion holdings in Treasury investments, purchased as part of its
quantitative easing programto boost the economy.