I wish people would stop perpetuating this. Do you know how much of the US debt China actually owns?
The US has about 16 trillion debt, and china owns 1.2 trillion of it. Only about 5 trillion is owned by foreign entities, the remaining 11 trillion or so is held by US entities.
Over the last four years
- the amount of foreign owned debt went up from 3 trillion to 5 trillion
- the credit rating for the US was downgraded twice - from AA+ to AA to AA-
Chances are good these two figures are related - US entities are finding better investments to place their money in, and foreign investors are gobbling up unpurchased US bonds.
We're still rocking a 1 trillion deficit - in fact this is the fourth straight year we've increased our debt by 1 trillion dollars. If you thought 11 trillion dollars was a huge debt - it's only taken 4 years to increase that by 33%.
Jokes need not be factual to be funny. In fact some of the best jokes play off people's unreasonable fears. China is a rising economic superpower, and everybody is wondering where it's going from here. Most countries are irritated at its currency manipulation. While it's quickly becoming a world player, it still has a long way to go before it overshadows the US. However in terms of raw numbers of workers and manufacturing output, many recognize the possibility that it could do so in the long run. Further they have purchased US debt at an unprecedented rate over the last decade. So no, they don't in any way, shape, or form "own" the US or even a significant portion of it, but there is reason to consider their position in terms of our debt. While our debt is large-ish, our GDP still keeps pace with our debt even in the downturn, so it's not a big problem.
Still, dissecting a joke is like dissecting a frog. Disgusting, smelly, and everyone feels worse off for the experience.