(BEIJING) -- A day before Vice President Biden arrives in Beijing, new data from the U.S. Treasury Department shows that in June, despite the prolonged debate over the debt ceiling, China bought another $5.7 billion in U.S. Treasury bonds. Beijing now has more than $1.17 trillion in holdings.
Japan, on the other hand, cut its holdings in June by $1.4 billion to $911 billion, while Hong Kong, which is counted apart from China, also reduced its holdings by $3.5 billion to $118.4 billion in June.
This, however, was before S&P downgraded the U.S. credit rating earlier this month, a move that has many Chinese analysts concerned and urging China to diversify its holdings.
So one of Biden’s main goals in this week's Asia trip, besides getting to know future Chinese leader-in-waiting Xi Jinping, is to convince the Chinese that the U.S. remains a safe bet. Biden is expected to arrive Wednesday evening Beijing time.
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