China’s sale of U.S. Treasuries puts a debate to rest

Japan has overtaken China as the largest foreign creditor to the United States. According to new data from the Treasury Department, China sold off more than $41 billion in U.S. government debt in the month of October. China had been the single biggest holder of U.S. Treasuries for most of the past decade. And that created fears about what might happen if China decided to sell. Now we know the answer: not much.