Which country does China owe its foreign debt to?

United States.

China actually owes the United States $5 trillion. China holds more than US$1.1 trillion in US Treasury bonds, US$200 to US$300 billion in US corporate bonds, and about US$100 billion in direct and indirect investments, excluding investment immigrants.

Of China’s nearly two trillion foreign exchange reserves, US dollar assets exceed 1.4 trillion, of which US$727.4 billion in Sino-U.S. debt, accounting for 23.6% of the total U.S. national debt. This shows that U.S. debt plays an important role in China’s foreign exchange reserves. The proportion is very high.