Why does Japan hold so many US Treasuries?

Quote from Martinghoul:

They hold foreign assets, because, similar to China, they used to run a large trade surplus.




Yes but China is not a large debtor. I guess what I am getting at is Japan really in a lot of debt or not?
 
Quote from harkm:

Yes but China is not a large debtor. I guess what I am getting at is Japan really in a lot of debt or not?
Japan is really in a lot of debt... However, it's important to realize that the Japanese govt borrows almost exclusively from its own citizens and corps.
 
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