China’s total foreign assets, including its dollar assets, have grown substantially. China is worried about the risks associated with holding large amounts of dollar assets, as evidenced by its call for a new global reserve currency. Is it appropriate for so much of a poor country’s national wealth to be invested in a rich country’s low yielding assets? And what risks does the U.S. run by relying heavily on a single country’s government for financing?

Setser: China’s $1.5 Trillion Bet
Roubini: The Almighty Renminbi?
Dyer: China’s Dollar Dilemma
Economist: Not Quite So SAFE
Setser: “Not Quite So SAFE”: This Weeks Economics Focus Column