In the first quarter of 2024 the China sold a record amount of US Treasury securities And US agency bondsfor a sum presumably equal to 53.3 billion dollars. Belgium, often seen as the custodian of China’s holdings, also sold $22 billion in Treasuries during the same period.
Such a move by Beijing highlights the need of the Asian giant to diversify away from American assets, while trade tensions between the two global superpowers persist. In particular, the recent ones duties announced byBiden administration on a series of Chinese imports have shaken the business world, already quite worried about the electoral promise made by Donald Trump. In the event of victory, the tycoon declared, the US could impose a levy of more than 60% on all Chinese goods.
What is certain is that the Dragon’s decision closely resembles a clear intention to diversify away from US dollar holdings. The possible proof will presumably come next November, when the aforementioned Chinese sale of American securities could even accelerate with the resumption of the trade war, even more so if Trump becomes president again. […]
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