Why does the US keep borrowing money from China? Can't they just make their own money?
The US government borrows money from China (as well as from other countries and individuals) in order to finance its spending, which often exceeds its revenue. While the US can certainly print its own currency, doing so excessively can lead to inflation, which reduces the value of the currency and can harm the economy. Therefore, the government must be careful to balance its budget and not print too much money.
As for why the US borrows from China specifically, it is largely a matter of supply and demand. China has a large amount of foreign currency reserves, and it invests some of those reserves in US government bonds. This provides a steady source of financing for the US government, and it also benefits China by earning interest on its investment.
While the US-China economic relationship is complex and multifaceted, the issue of borrowing is just one aspect of it. Other factors include trade, investment, and intellectual property rights, among others. Nevertheless, the US government continues to borrow money from China as part of its overall borrowing strategy.
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