Need business and finance help with Global Financial DQ 3

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Global Financial DQ 3 U.S. Debt in China (25 points) China owns approximately 26% of U.S. debt. Recently, China was permitted to purchase treasury bonds directly (http://news.xinhuanet.com/english/china/2012-05/23/c_131605050.htm). What impact could this major holding by China have on the U.S. economy, and could it have any further impact on domestic policy?
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