From WSJ: Could China move out of US Treasurys and into U.S. real economy assets in a big way? In early 2009, China’s Premier Wen Jiabao drew attention by announcing an intention to manage foreign-exchange reserves more actively, and seek to diversify away from U.S. government holdings.
China currently holds more than one trillion of U.S. Treasurys and another $500 billion of U.S. government-backed agencies………………………………….Full Article: Source