Part 3/8:
U.S. Treasuries are widely regarded as a secure investment, boasting minimal default risk. This perception stems not only from the stability of the U.S. government but also from the active market that allows for easier entry and exit of investment positions. Additionally, the U.S. dollar serves as the world’s primary reserve currency, leading many central banks to hold substantial dollar-denominated assets. These advantages fueled China's interest in acquiring U.S. Treasuries, particularly during its economic boom in the early 2000s when it amassed considerable foreign currency through trade surpluses.