The US paid 189 billion dollars in interest payments alone on our debt in 2009. About 1/16 of that was to China. They're making decent money off of us.
"China should receive about $74.4 million per day in payments during the current fiscal year [2011]."
http://www.politifact.com/virginia/...forbes-says-us-pays-china-739-million-day-de/
Some Chinese companies are making a shitpot of money off western debt, yes. But that booming Chinese economy which allows them to buy up debt is based upon those same western countries buying Chinese goods, exporting manufacturing.
And much of the domestic prosperity is based on government subsidies of domestic consumer consumption. Remember Cash for Clunkers? Expand that to every kind of consumer durable (refrigerators, cars, TVs, etc) and carry it on for almost a decade. That's what the Chinese government is doing, and its really damn expensive, and the party's about to end.
Stop thinking of China as a monolithic, Party-run, centralized state. That was China under Mao, not the China of 2012. The country is rapidly backsliding into warlordism, which has been its normal form of government for most of its history. Just now instead of Mongol chieftains, it's regional Party apparatchiks, PLA officers, or super-capitalists running their own fiefs without much regard to Beijing.
The Party, PLA and MSS operate as independent political entities, and are actively feuding with each other. There are apparently gangs - literally gangs - of junior PLA officers who will do things like kidnap regional Party bosses and hold them to ransom. It'd be like JOPA carjacking a Congressman and demanding more OPTAR, promotions, and some of those spiffy Wiley-X flight gloves.
Add to the mix that Beijing is getting worse and worse at Internet censorship - or rather, they can't keep up with the technology - and add restive ethnic minorities and burgeoning middle class that's getting tired of being shaken down by whatever local thug's in charge. It's not a recipe for continued success.
So yeah, there are a few Chinese who own all that debt, but its not some kind of endless cash cow that immediately gets funneled into aircraft carriers and J-20s.
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