A Reuters exclusive today describes a method China used recently to hide some of its U.S. Treasury purchases - "US caught China buying more Treasuries than disclosed."
from Reuters Investigates:
Worrying about the power China has over the U.S. as America’s largest foreign creditor has become a national pastime. It’s a bipartisan issue in Congress and a favorite subject among pundits lamenting the decline in U.S. influence around the world. But could China really use its Treasury purchases to shape U.S. policy? Diplomatic cables released by WikiLeaks and obtained by Reuters suggest that has already happened.
China's State Administration of Foreign Exchange (SAFE) has traditionally lived up to its name when managing its $2 trillion portfolio of foreign reserves. Now the department has hired a whizz from U.S. bond investor Pimco to be its investment head.