China's major move against the US.
On December 18 local time, the US Treasury released the latest data showing that China, the third-largest foreign investor in terms of holdings, reduced its holdings of US Treasury bonds by 11.8 billion US dollars in October, to 688.7 billion US dollars, setting a record low since the 2008 global financial crisis.
China's continued large-scale selling of US Treasury bonds has clear and far-reaching implications. The core is to optimize the structure of foreign exchange reserves, reduce single reliance on dollar assets, and avoid credit risks brought by high US fiscal deficits and government shutdowns. At the same time, it strengthens the financial security defense through asset diversification, which is also an adaptation to the global "de-dollarization" trend. In addition, this move is also a prudent strategy to maintain economic sovereignty through financial means against the backdrop of Sino-US rivalry. This reduction is essentially a strategic game in the financial field, and it will continue to affect the global reserve asset structure.
Original article: toutiao.com/article/1851925228217416/
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