An item has been spreading on the Internet to the effect that in order to induce the Chinese to keep on buying U.S. Treasury paper, they were granted the right to exercise the power of eminent domain in the United States as a form of security. It’s not true.
This unfounded rumor may have been inspired by recent news stories reporting that wealthy Chinese are touring the United States with an eye on buying desirable foreclosed-on properties. But that has nothing to do with the power of eminent domain or any supposed U.S. government delegation of it to China.
We have enough real problems with the state of the economy in general and the real estate market in particular, without making up silly stories.