“To be honest, I am definitely a little worried.”  So said Wen Jiabao in a recent press conference, referring to the massive amount of money that China has used to finance US debt in recent years.  China has emerged as one of the most stable nations during the current global financial crisis with their enormous cash reserves, half of which are invested in the US.  Hillary Clinton, on her recent trip to China, reassured Chinese officials of the safety of their investments, but Chinese officials are still worried about the effects a future weakening dollar may have on their holdings.  As it stands now, the US dollar is emerging as one of the world’s strongest currencies due to the fact that in times of crisis the dollar is seen as a safe haven.  However, if the dollar begins to depreciate in the future, Chinese holdings will drop rapidly in value.  While threats can be made that China will sell off their holdings, the likelihood of that is slim since flooding the market with US treasury bonds would seriously deflate their value and in turn the amount of money the CCP would regain.