“In my opinion, at this moment, the best strategy is no buy, no sell. At this moment, it’s very difficult to shift (investment), to change fundamentally, because we hold such a big amount.”-Cheng Siwei, former senior Chinese lawmaker

Cheng Siwei, is advising the Chinese government to take a “no buy, no sell” attitude towards U.S. Treasury bonds.  Cheng is telling the government that it needs to hold off on investing it’s $3.2 trillion in foreign exchange reserves.

Many European countries have been knocking down China’s door, begging China to bail them out by buying their bonds, instead of more U.S. bonds.

Cheng says the situation for China has become more of a political one, than an economic one.  In other words, with so many countries, including the United States, hoping to be saved by China’s cash, the Chinese are starting to realize just how much power they have.