The answer, I think, is yes. Even after Moody's downgrade. At least so long as China's ambitions for scaling up what seems to have been a roughly a $15 billion-a-year financing program are reasonable. I still remember a time not so long ago when China was adding $500 billion a year to its reserves and shadow reserves and was channeling $300 or more billion a year into the U.S., mostly by buying bonds (Not selling reserves and selling U.S. assets, as it did in 2016. The swing from 2013 to 2015-2016 was large). I still have a great deal of respect for the raw financing capacity of China’s state, writes Martin Wolf. Read more
