© Reuters. FILE PHOTO: The flags of the United States and China fly from a lamppost in the Chinatown neighborhood of Boston, Massachusetts, U.S., November 1, 2021. REUTERS/Brian Snyder/File Photo
By Jamie McGeever
ORLANDO, Florida (Reuters) -A gradual financial disentangling of China and the United States after decades of symbiosis may reduce fears of ‘mutually assured financial destruction’ but also harden divisions in an increasingly polar global economy.
Whether one or the other suffers more from that separation is under the microscope right now. But the mutual threat – especially China’s U.S. bond holdings – looks far less potent than once assumed.
Since China’s return to the global economic stage in 2000, the wave of U.S. corporate and banking investment in the country was seemingly matched by China banking windfall savings from the resulting export and growth boom back into U.S. Treasury bonds.
Channeling the old Cold…
