this post was submitted on 05 Jul 2023
72 points (79.5% liked)

politics

18966 readers
9 users here now

Welcome to the discussion of US Politics!

Rules:

  1. Post only links to articles, Title must fairly describe link contents. If your title differs from the site’s, it should only be to add context or be more descriptive. Do not post entire articles in the body or in the comments.
  2. Articles must be relevant to politics. Links must be to quality and original content. Articles should be worth reading. Clickbait, stub articles, and rehosted or stolen content are not allowed. Check your source for Reliability and Bias here.
  3. Be civil, No violations of TOS. It’s OK to say the subject of an article is behaving like a (pejorative, pejorative). It’s NOT OK to say another USER is (pejorative). Strong language is fine, just not directed at other members. Engage in good-faith and with respect! This includes accusing another user of being a bot or paid actor. Trolling is uncivil and is grounds for removal and/or a community ban.
  4. No memes, trolling, or low-effort comments. Reposts, misinformation, off-topic, trolling, or offensive.
  5. Vote based on comment quality, not agreement. This community aims to foster discussion; please reward people for putting effort into articulating their viewpoint, even if you disagree with it.
  6. No hate speech, slurs, celebrating death, advocating violence, or abusive language. This will result in a ban. Usernames containing racist, or inappropriate slurs will be banned without warning

We ask that the users report any comment or post that violate the rules, to use critical thinking when reading, posting or commenting. Users that post off-topic spam, advocate violence, have multiple comments or posts removed, weaponize reports or violate the code of conduct will be banned.

All posts and comments will be reviewed on a case-by-case basis. This means that some content that violates the rules may be allowed, while other content that does not violate the rules may be removed. The moderators retain the right to remove any content and ban users.

That's all the rules!

Civic Links

Register To Vote

Citizenship Resource Center

Congressional Awards Program

Federal Government Agencies

Library of Congress Legislative Resources

The White House

U.S. House of Representatives

U.S. Senate

Partnered Communities:

News

World News

Business News

Political Discussion

Ask Politics

Military News

Global Politics

Moderate Politics

Progressive Politics

UK Politics

Canadian Politics

Australian Politics

New Zealand Politics

founded 2 years ago
MODERATORS
 

The United States pays interest on approximately $850 billion in debt held by the People’s Republic of China. China, however, is currently in default on its sovereign debt held by American bondholders.

you are viewing a single comment's thread
view the rest of the comments
[–] [email protected] 22 points 2 years ago* (last edited 2 years ago) (1 children)

The title is mainly clickbait. The bonds they're talking about were sold in 1938 by the US backed Republic of China, which at the time was fighting a civil war with the Peoples Republic of China (Maoists). The RoC lost, and retreated to Taiwan. The PRoC then assumed control of the country, and decided that it wasn't interested in paying the debts of the government it had just vanquished.

However, under international law, when the PRoC took over China, they also assumed responsibility for paying those bond holders. Nobody has gotten them to pay up except the UK when the transfer of Hong Kong was up for consideration.

So basically, this is a 70 year old debt that was taken out against China's former government, and the current government really has no urgency to address it.

As @mazelado pointed out, this is an opinion piece by the Heritage Foundation, so the motivations in writing it are suspect, especially as it's specifically pushing the Biden administration to fight this very old fight. You would have thought that if had really been a pressing matter, Trump would have handled it when he started the US / China tradewar right before COVID, as it was clear Don didn't have any qualms pushing potentially destructive diplomatic policies that were unpopular to the Chinese.

[–] [email protected] 6 points 2 years ago

You would have thought that if had really been a pressing matter, Trump would have handled it when he started the US / China tradewar right before COVID, as it was clear Don didn’t have any qualms pushing potentially destructive diplomatic policies that were unpopular to the Chinese.

This is a fantastic point. The article sounded correct when I read it, but it felt very obviously biased as well. Your comment here helps me square everything.