One of major global financial issue was establishment of AIIB (Asian Infrastructure Investment Bank) under China's leadership. Many economists offer their thoughts that China starts to show its power towards global economy as one of two largest economy countries. The reporter at Reuters claimed that "Chinese President Xi Jinping launched a new international development bank seen as a rival to the U.S.-led World Bank at a lavish ceremony on Saturday, as Beijing seeks to change the unwritten rules of global development finance." For further reading, please refer to the following link (http://goo.gl/UH4dvB).
China reveals its influence in U.S. securities market. According to CNN.com (http://goo.gl/bBBzI4), last year "China owned $1.3 trillion of U.S. Treasuries as of June, making it the biggest holder of U.S. debt". The article said that "China is not trying to sink U.S. economy". However, it sounds to me that China has abilities to shake U.S. economy, if they want. One obvious thing is that China can also put the United States in difficult situation. China can raise borrowing costs of U.S. If the U.S. national debts increase with current rate of speed in the future, China's small movement towards raising borrowing costs would be detrimental to U.S. economy. Possibly, such movement may cause the crash of U.S. securities/bonds market that Robert Shiller estimates in a different context.
What do you think about current amount of U.S government securities/bond? Do you expect China will take over the U.S. title of the biggest economical power? Are we experiencing global financial power redistribution from U.S. to China? Do you see AIIB as a first step of China to move towards the largest economic power? What is your thought about China's financial influence towards the United States? What should the U.S. government do? Please feel free to share your thoughts and other sources.