The government of China does not owe direct debt to the United States government; rather, the dynamic operates in reverse, as the U.S. government owes money to Chinese investors. The United States Department of the Treasury issues securities such as Treasury bonds, notes, and bills to finance national debt deficits, and foreign entities—including the Chinese central bank, institutional funds, and private investors—purchase these sovereign instruments as safe-asset investments. Consequently, holding U.S. Treasuries means the United States government owes money to those global holders, making China one of several major foreign creditors holding American sovereign debt.