The U.S. debt to China refers to the amount of money that the United States government owes to China. This debt is primarily the result of the U.S. government borrowing money from China to fund its budget deficit. As of March 2023, the U.S. debt to China is approximately $1.06 trillion, making China the second-largest holder of U.S. debt after Japan.
The U.S. debt to China has important implications for both countries. For the United States, the debt represents a significant financial obligation that must be repaid. For China, the debt provides a source of investment and a way to influence U.S. policy.