The banking crisis, the liquidity squeeze and the collapse in home prices has sent China fleeing U.S. stocks. Can you blame them?

They hold trillions in U.S. debt that's worth less and less every day. Their investment in Blackstone is down 84%, not to mention the shellacking they've taken on Morgan Stanley.

Across the nation, China investors and workers are "mad as hell" as they see layoffs mount as China Investment Corporation executives are attacked in newspapers and blogs across the nation.

You needn't take my word. This chat room posting from the Financial Times of London tells the whole story: "They are worse than wartime traitors," says one recent chat-room posting. "Blind worship of the U.S. by so-called 'experts'," complains another.

And the Chinese government is listening carefully. They know more than any other nation that financial instability can lead to political instability. Which is why they are taking their money out of U.S. Treasuries and using their trillions in cash reserves to corner the oil markets while prices are low and the returns are much greater.

Why, in the last 30 days, $39 billion earmarked for U.S. Treasuries were diverted to buying huge stakes in Russian, Brazilian and Venezuelan oil companies. At the same time, they lent Brazil $10 billion in return for a pledge for 160,000 barrels of crude per day.

As Jiang Jiemin, chairman of PetroChina, said in the China Daily: "The low share prices of some global resource companies provide us with some fresh opportunities."

And they're not only using their money to lock up oil reserves but also commodities as well — all to fuel their only infrastructure stimulus.

In the past 30 days, China Development Bank grabbed a 18% slice of Australian mining giant Rio Tinto for $19.5 billion.

That's not only $19.5 billion that's not going into U.S. Treasuries, but just one of many deals in the works that the Chinese have in play designed to increase their investment returns and lock up the world's oil and commodities markets for their own benefit.

Here are two that most investors haven't heard about: China Petrochemical's purchase of Canada's Tanganyika Oil and a bid by China Minmetals for OZ Minerals, an Australian zinc producer on the verge of bankruptcy.

China's Move to Corner Oil and Commodities Markets

China's move to corner oil and commodities markets and grow internally is an extremely shrewd move. After all, China's growth will hit a mind-boggling 7% in 2009.

To be sure, that's less than the sizzling hot years of 11% annual growth, but compared with the U.S. growth of 2% — you don't have to be a computer scientist to know where the big money will be made in the next two years.

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