WikiLeaks: China Flexed Its Muscles Using U.S. Treasuries

Confidential diplomatic cables from the U.S. embassies in Beijing and Hong Kong lay bare China's growing influence as America's largest creditor.

As the U.S. Federal Reserve grappled with the aftershocks of financial crisis, the Chinese, like many others, suffered huge losses from their investments in American financial firms -- from Lehman Brothers to the Primary Reserve Fund, the money market fund that broke the buck.

The cables, obtained by WikiLeaks, show that escalating Chinese pressure prompted a procession of soothing visits from the U.S.Treasury Department. In one striking instance, a top Chinese money manager directly asked U.S. Treasury Secretary Timothy Geithner for a favor.

In June, 2009, the head of China's powerful sovereign wealth fund met with Geithner and requested that he lean on regulators at the U.S. Federal Reserve to speed up the approval of its $1.2 billion investment in Morgan Stanley, according to the cables, which were provided to Reuters by a third party.

http://www.huffingtonpost.com/2011/02/17/wikileaks-china_n_824591.html

Foreigners as a whole hold less than 30% of US debt. China has about 6% and is REDUCING their exposure - $30b+ in last year.

The largest owner of US government debt by far, holding approximately six times the debt value China does, is... the US government. Other US investment funds and individuals also hold far far more than China.

but it's nice to get unofficial Official Confirmation.