China, the biggest buyer of U.S. Treasury securities, owns a lot more than previously estimated. In an annual revision of the figures, the Treasury Department said Monday that China's holdings totaled $1.16 trillion at the end of December. That was an increase of 30 percent from an estimate the government made two weeks ago The government made the change to its monthly report based on more accurate information it obtains in an annual survey. That survey does a better job of determining the actual owners of Treasury securities. China was firmly in the top spot as the largest foreign holder of U.S. Treasury debt even before the revisions. But the big increase in Chinese holdings could ease fears that Chinese investors might begin dumping their U.S. holdings. Such a development could send U.S. interest rates rising That would slow America's economic recovery and ncrease Washington's costs for financing the $14.3 trillion national debt.
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