China’s US Treasury holdings becoming ‘hostages,’ academic warns
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China needs to further reduce its Treasuries holdings to lessen potential leverage of Washington. China's vast American assets are hindering the safeguarding of national sovereignty. The US freezing of Russian assets following Moscow's invasion of Ukraine in 2022 is cited as an example of American actions that pose challenges for foreign investors. China's holdings of Treasuries have been trending down for several years, hitting the lowest level since 2009 last October. China is the second-largest foreign owner of Treasury securities. Di Dongsheng, vice-dean of Renmin University’s School of International Studies, argues that China no longer needs massive foreign reserves due to structural economic reforms at home. Di also views large dollar reserves as unnecessary in the event of upward pressure from the US currency against China's yuan.

#China #UsTreasuryHoldings #Leverage #NationalSovereignty #ForeignReserves #ExchangeRate

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