The CNS News article says:
“In August 2008, before the bank bailout and the stimulus law, overall Chinese holdings of U.S. debt stood at $573.7 billion. That number continued to escalate past May 2009-- when China started to reduce its holdings in short-term Treasury bills--and ultimately peaked at $1.1753 trillion last October.
As of March 2011, overall Chinese holdings of U.S. debt had decreased to 1.1449 trillion.”
So let’s do the math.
Peak value of US Treasuries held by China: 1.1753 trillion dollars in October 2010
Last reported value of US Treasuries held by China: 1.1449 trillion dollars in March 2011
Amount changed between Oct 2010 and March 2011: 1.1753 trillion – 1.1449 trillion = 0.0304 trillion
Peak amount: 100% = the October 2010 value of 1.1753
Amount stilled owned: 97.4% of peak = March 2011 value / Oct 2010 value (or 1.1449 / 1.1753)
Amount of decrease: 100% - 97.4% = 2.6% (or: 0.0304 / 1.1753 = 2.6%)
Someone at CNS News really goofed:
“At the end of March 2011, by which time the Chinese had dropped their Treasury bill holdings 97 percent from their peak, the publicly marketable segment of the U.S. national debt had almost doubled from August 2008, hitting $9.11 trillion.”
China did not decrease its holdings by 97%, it decreased its holdings by 2.6% to 97.4%. A very different story than the one written.
While a downward trends in US Treasuries is apparent, it should be viewed as prudent financial management by China (reducing reliance on a single revenue source; decrease debt holdings from a customer entering financial difficulty). I suggest, if Doves wish to reduce the country’s reliance on China’s future largesse, that they slow or eliminate purchasing products made in China and actively lobby retail organizations to offer products manufactured elsewhere, preferably in the United States.