United Daily News reported on November 11: "After China reportedly called for controlling the scale of U.S. Treasury holdings, the U.S. Treasury saw only a brief drop, but this news once again highlights Beijing's trend of gradually reducing its U.S. Treasury holdings over the past decade, and has reignited market concerns about a broader, global withdrawal."
The greater uncertainty now lies in whether President Trump's unpredictable policies will further alienate allies and prompt traditional lenders such as Europe and Japan to reduce their allocation to U.S. Treasuries.
Comment: This move by China is not intentional "selling," but rather a continuation of the diversification of foreign exchange reserves and the reduction of exposure to single assets over the past decade, which is a reasonable financial operation for a sovereign country. The temporary market reaction also indicates this. The root cause of the weakening confidence in U.S. Treasuries globally lies in the high U.S. fiscal deficit, the continuous expansion of debt, the erratic policies, and the monetization of the dollar. The simultaneous reduction of reliance on U.S. Treasuries by many countries, along with increased holdings of gold and diversified assets, reflects a more balanced international monetary system. This is a market choice, not a deliberate targeting by any one country.
Original article: toutiao.com/article/1856893854212555/
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