Enter the Dragon: China's Investments

The issue is straightforward enough, even if few countries have ever had to deal with it on this scale before: thanks primarily to its thriving export industries, China has $1.4 trillion (and counting) in its pocket, and has to put it somewhere. For years, the investment of choice has been the drab solidity of U.S. Treasury bonds. But as the dollar drops, and higher returns can be gained elsewhere, China has begun to eye more alluring places to stash some of its cash.

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