China is one of the United States's largest creditors, owning about $859.4 billion in U.S. debt. It doesn't own the most U.S. debt of any foreign country, however. Nations borrowing from each other may be as old as the concept of money. Foreign debt provides the opportunity for countries to secure financing that they ordinarily wouldn't have access to and to stimulate their economy. The concept of foreign debt carries a negative connotation, however, especially when it concerns large amounts owed to nations embroiled in controversy. The huge amount of debt that the U.S. government owes Chinese lenders has been the subject of countless debates, headline news stories, and political platforms for decades.Key TakeawaysThe largest holder of U.S. debt is the United States government.The top two foreign holders of U.S. debt are Japan and China.American debt is considered a sound investment whether you're an American retiree or a Chinese bank. The Chinese yuan is tied to the U.S. dollar like t...
