This report examines the importance to the U.S. economy of China's investment in U.S. securities, as well as U.S. concerns over the possibility that China might unload a large share of those holdings, the likelihood that this would occur, and the potential implications such action could have for the U.S. economy. The report concludes that a large sell-off of Chinese Treasury securities holdings could negatively affect the U.S. economy, at least in the short-run.

This report consists of three free-standing parts: the first discusses current issues in Tibet, including the March 2008 Chinese crackdown against demonstrations in Lhasa and elsewhere; the second briefly reviews Tibet's historical and political status with respect to China — a basic source of controversy in many Sino-Tibetan problems; and the third reviews and analyzes U.S. relations with and congressional actions toward Tibet since the 1980s, including legislative initiatives.