One reason for the huge investment by China into the US economy is the:
A) the desire of China to â€˜sinkâ€™ the US economy.
B) Chinese investors view that US investments are less stable.
C) large savings rate in China that encourage capital outflow.
D) low savings rate in China which makes the cost of borrowing very low in China.

Question

Quizplus · Accepted Answer

China has a large savings rate, and in order to encourage capital outflow, the Chinese government invests heavily in foreign markets, including the US. This investment serves as a way to diversify China's assets and reduce risk in their domestic markets.

One Reason for the Huge Investment by China into the US