The United States pays interest on approximately $850 billion in debt held by the People’s Republic of China. China, however, is currently in default on its sovereign debt held by American bondholders.
The United States pays interest on approximately $850 billion in debt held by the People’s Republic of China. China, however, is currently in default on its sovereign debt held by American bondholders.
This is also a really good point. Britain immediately recognized the PRC after the 1949 revolution while the US recognized the ROC for another 30 years. If the ROC never paid back it’s debts, and the United States never asked them to, the debt was de facto forgiven.
This helps put things in a historical context, thank you!