From the Background: "Investment plays a large and growing role in U.S.-China commercial ties. For many years, the Chinese government invested much of its foreign exchange reserves in U.S. assets, particularly U.S. Treasury securities. These reserves stemmed from China's large annual trade surpluses, foreign direct investment (FDI) inflows, efforts to halt or slow the appreciation of its currency, and policies that restrict capital outflows. More recently, however, the Chinese government has sought to diversify its investments by encouraging its firms--many of them state-owned enterprises (SOEs)--to invest overseas, become more globally competitive, and gain access to raw materials and cutting-edge technology."
CRS In Focus, IF11283
Congressional Research Service: https://crsreports.congress.gov/