"The good news is Gamble believes China will continue to buy U.S. Treasuries, which should come as a relief to those worried about the $235 billion of securities being auctioned this week. ‘We don't have to ask them to buy our Treasuries, they simply don't have a choice,’ he says.
Because their economy is so dependent on exports, especially to the U.S., China needs us as much as we need them, Gamble describes. So expect China to keep funding our deficit -- by recalculating their surplus dollars into Treasuries -- and the U.S. to keep buying their exports, at least for the foreseeable future. The bad news is this same dynamic will prevent the Chinese from letting their currency, the remaining, float vs. the dollar anytime soon. If China's currency were allowed to trade freely it would rise in value vs. the dollar which would make Chinese goods more expensive for Americans.
"That would create fewer exports [for China] and make their unemployment situation worse," Gamble says. "The main thing policymakers in China are worried about is unemployment." Presumably, U.S. policymakers are worried about the same thing but don't expect this week's economic confab to provide any help on that front, or any other for that matter.
Task1. According to this article, what is the interdependency between China and US? Which country has a capital/current account deficit/surplus?