Question

What are the economic and geopolitical implications of the relationship between debtor (United States) and debt-holder (China)?

Answer 1

The answer is below

Step-by-step explanation:

Some of the economic and geopolitical implications in this type of situation is that

1. Both the United States and China gain various advantages from trade relations.

2. The Chinese continuous lending to the United States leads to an increase in mortgage-backed securities and treasury bonds in the United States.

3. the United States appears to turn to a net debtor nation, which can make them vulnerable to the demands of a creditor nation (China).