If you didn’t already know.  China is the largest holder of US debt.  This strikes me as the first time in a long time that another country has the power to make suggestions about US domestic policy and know that they will be heard.

China’s premier didn’t say it in so many words, but the implied warning to Washington was blunt: Don’t devalue the dollar through reckless spending.

Premier Wen Jiabao’s message is unlikely to be misunderstood at the White House. It is counting on Beijing to help pay for its stimulus package by buying U.S. bonds. China already is Washington’s biggest foreign creditor, with an estimated $1 trillion in U.S. government debt. A weaker dollar would erode the value of those assets.

via The Associated Press: China ‘worried’ about US Treasury holdings.