China's Strategy Turns Slightly

China has begun buying quantities of Japanese government bonds recently.According to Yifan Hu,Chief Global Economist at Citic Securities,China's overall strategy is:
1.Buy more commodities.
2.Make direct investments in natural resources.
3.Buy Treasuries and European bonds,as well as some Japanese bonds-but that's not a trend.The U.S. dollar will still be relatively strong,at least in the medium term.U.S. growth will still be better than Japan's,with their aging population and other problems,so Treasuries will still be bought.As well,China cannot afford to harm the U.S. economy,which would happen should she suddenly stop buying Treasuries.
Ms.Hu doesn't expect high Chinese export numbers,with the U.S. and European economies being slow.The tightening talk by Beijing has been toned down.The Chinese currency,the Yuan,has started to appreciate again.This is bound to instigate more calls by U.S. politicians for retaliatory action to be taken against China,whose trade advantage is linked to the rising Yuan.