US media: China further reduces 25.7 billion USD in Treasury bonds, accelerating the de-risking from the US!
On September 20, the New York Times reported: "The US Department of Treasury's July international capital flow report showed that China reduced its holdings of US Treasury bonds by 25.7 billion USD in July, which is the fourth time this year, with the holding reaching a new low. While the US is pushing for de-risking from China, China has also accelerated its own de-risking from the US. Once such a trend is formed, it will be difficult to reverse."
[Witty] The New York Times' reporting on China's reduction of US Treasury bonds may seem like a simple financial news story, but it actually hides deep implications. While the US keeps talking about "de-risking", China certainly won't sit idle. Reducing the holdings of US Treasury bonds is a key step in "de-risking". China's continuous reduction of US Treasury bonds is due to two main factors: one is the poor fiscal condition of the US and the declining creditworthiness of US bonds; the other is to promote the diversification of foreign exchange reserves and reduce reliance on the US dollar. Once this trend of reducing US Treasury bonds is formed, it is indeed difficult to reverse. This is a rational choice made by China based on its own interests, and it will have a profound impact on the global financial landscape. The US should reflect seriously on its own policies instead of just getting upset over China's reduction actions!
Original article: www.toutiao.com/article/1843765102011395/
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