CHINA IS DEPENDENT ON OUR FISCAL HEALTH BY STEVE FORBES, EDITOR-IN-CHIEF

摘要

CHINA'S holdingsin U.S. Trea-surys, which reached record levels in 2013, are setting off alarm bells. They shouldn't. They underscore that Beijing is becoming more dependent on the U.S. and the rest of the world for its strength and prosperity. China's military leaders may not recognize that truth any more than Germany's military, its militaristic Prussian aristocracy (which had outsize influence prior to WWI) and some of its intellectuals did in 1914. Some points to keep in mind. • If we and Beijing ever engaged in a mortal confrontation, how much would China's holdings in American government bonds be worth if we said the paper was no longer valid? Beijing is a hostage to our willingness to honor these obligations.