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China's dilemma over US debt holding

China is the biggest overseas holder of US debt and has complained about the handling of the debt ceiling battle in Washington.

The Asian nation's government has billions of dollars of foreign currency reserves and US bonds are one of the few assets plentiful enough for it to invest in.

But there are many policy makers in Beijing who are not keen on that relationship with Washington. They would also like to see the dollar replaced as the world's reserve currency.

Ali Moore reports.

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