Nikkei: China's continuous reduction of U.S. Treasury bonds currently falls below trillion

China Well -off Network, July 20th. Over the past 12 years, the U.S. Treasury bonds held by Laoma China fell below $ 1 trillion for the first time in 12 years. Since the intensified Sino -US trade war, it has gradually decreased since 2018. It also believes that the United States has frozen foreign exchange reserves due to economic sanctions on Russia, which has also had an impact on China's holdings. Earlier, the funds accumulated by China through the surplus of frequent projects have flowed into US Treasury bonds, but if China -US decoupling has intensified in the financial sector, it may become a factor that has caused the market to become unstable.

Japan Economic News reported that China's U.S. Treasury holdings were the largest in the world, but it was overtaken by Japan in June 2019 and is currently ranked second. Due to the trade war, the opposition between China and the United States in high -tech fields such as semiconductors has intensified, this opposition is expanding to the financial field.

The international capital statistics released by the US Treasury on July 18 showed that China's holdings at the end of May decreased by 22.6 billion US dollars to $ 980.7 billion. Six consecutive months lower than last month, and decreased by 100 billion US dollars (9 %) in 6 months.

Political opposition behind China's long -term reduction of US debt. In the context of competing for dominance with the United States, China has been seeking dependence on the US dollar. Some opinion believes that the recent impact on the US sanctions on Russia. The United States has adopted measures such as frozen Russia's foreign exchange reserves to ban Russia from using US dollars.

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