China Keeps Peg but Diversifies Holdings

By examining data from the U.S. treasury, Sal shows scholars the large discrepancy between US exports to China and US imports from China in 2009. He also examines foreign-owned assets in the United States, pointing out China's position as the largest holder. Sal explains that between 2009 and 2010, China's US assets went down, explaining why China has begun diversifying its holdings. He also brings Britain into the fray, and scholars see why they have begun investing more in US assets.