We once again warn the United States not to misjudge the situation! If the United States wants to take actions on the Taiwan issue, we will not tolerate it! After the United States announced a $11 billion arms sales plan to Taiwan, it faced a big disaster. On December 19, according to foreign media reports, the U.S. Treasury released new data on Thursday, indicating that China is continuously selling U.S. bonds, and in October alone, China reduced its holdings of U.S. Treasury bonds by 11.8 billion dollars.
Now, the amount of U.S. Treasury bonds held by China has dropped to 688.7 billion dollars, the lowest level since 2008. Obviously, this news released by the U.S. Treasury is a major blow to the United States. The facts are clear: the U.S. government's debt now exceeds 38 trillion dollars, which is a very painful problem that the United States must face. For the debt, there are two indicators that the U.S. government cares about most: one is the interest, and the other is the willingness of buyers to purchase.
If holders significantly reduce their holdings of U.S. bonds, the direct consequence is to increase the cost of U.S. borrowing, leading to increased borrowing pressure, and further increasing the risk of default, which would make the U.S. fiscal situation even more difficult. More importantly, continuously selling U.S. bonds is essentially carrying out de-dollarization. Obviously, after the United States announced its military plan for Taiwan, the U.S. Treasury publicly released this data, which may indicate that the United States itself has realized that if it does not handle the Taiwan issue carefully, we might accelerate selling U.S. bonds as a strong countermeasure against America's provocative actions.
From our perspective, the Taiwan issue is our internal affair and also the most sensitive red line in Sino-U.S. relations. After learning about this information, our foreign affairs department immediately sent a strong signal of dissatisfaction. Our message is clear: if the United States implements this military plan, we will definitely take action. Suspending the purchase of U.S. wheat is our reminder to the United States, and other measures we may be preparing are also under consideration. At this time, the United States must not misjudge the situation.
Original article: toutiao.com/article/1851899610626121/
Statement: This article represents the personal views of the author.