reduction of their US investment, diversifying their export market to reduce dependence on US imports and purchasing/investing in energy corporations outside the US as well as bidding on US corporations like Unocal.
China is not the only country doing this, many others are reducing their dependence on the US economy. There have been new trade agreements with China/Canada; China/Russia; Venezuela/Russia/China.
Edited to add: Here is a snip from a May article:
Foreign investors sell U.S. assets
By TAVIA GRANT
Globe and Mail Update
Monday, May 16, 2005
International investments in U.S. securities dropped to $45.7-billion (U.S.) in March from $84.1-billion in February, the U.S. Department of Treasury said Monday, further evidence that foreign central banks may be diversifying their holdings away from U.S. assets.
The March inflows fell well short of the $70-billion economists polled by Bloomberg had expected. Moreover, it is below the $65-billion to $75-billion that is needed to cover the U.S.
http://www.theglobeandmail.com/servlet/Page/document/v4/sub/MarketingPage?user_URL=http://www.theglobeandmail.com%2Fservlet%2Fstory%2FRTGAM.20050516.wusdollar0516%2FEmailBNStory%2FBusiness&ord=1119620190063&brand=theglobeandmail&force_login=true(To read the whole article, you have to subscribe because it is now in the archives.)