Considering just how much money is spent on defence yearly in the US I am surprised something as trivial as satellite bandwidth capacity is an issue. More money is spent on the military than anything else in the budget and yet after all of those hundreds of billions, still need to borrow capacity from a Chinese satellite. Makes you wonder where the priorities actually are doesn't it?
This is not really a big deal as far as privacy is concerned, it does however show just how reliant the US amongst other countries have become on countries like China for innovating and help keeping up with this heavily connected and forever-evolving world. Hopefully the in-sourcing boom trend continues and perhaps the US starts innovating and relying on itself again instead of others.
US keep seeing themselves as the superpower - a superpower that is paying a rival (and developing) country instead of fighting against it. Why can't we move past that and think of win-win scenarios for both countries.
Taking this logic, the media in China should state: China is buying US debt - Yes, US. China is a significant holder in US debt and bought a lot when the economy turned sour in 2008. (Terrible investment since the US would just turn around and force the RMB to appreciate against the dollar). This in turn supported the US economy and the world's economy.
As I read the article, I see this as a win-win scenario. US gets bandwidth and China gets money. Cross border cooperation should be encouraged - not discouraged.
There's nothing else to do with a literal trillion dollars. You couldn't buy enough gold or oil without sending commodity prices parabolic and shooting yourself in the foot (since commodities are priced in dollars that's one use).
If they just held the dollars, they would do nothing but depreciate, even though the treasuries yield is low it's better than zero.
If they tried to dump the dollars, they'd find a market that couldn't absorb that scale and it would send the dollar plunging, which would in turn hurt the ability of Americans to buy Chinese goods, while boosting American export competitiveness.
And on the plus side, holding a trillion worth of US paper, is an ok leverage point (not great, because the Fed could wipe that out with a swipe of its hand).
There's no good scenario once you are accumulating hundreds of billions of dollars via a trade imbalance. Treasuries are the only market large enough to absorb it all.
That said, Huawei has such a big lead in the rest of the world in comm tech, they probably already are monitoring. A wise opponent lets his adversary volunteer information first, before prodding for it.
I'm reminded of a funny time when I was in an internship. My team and another team was fighting over disk space in the database servers. So we created a whole bunch of dummy tables. Whenever one of us needed to do something, we'd request for one of the dummy tables to be dropped so that we could do our thing. The other team could never do anything. It was weird.