The world’s second-largest economy is steadily unloading billions of dollars in US Treasuries.
New data from the US Treasury Department shows China pared its Treasury holdings from $816.3 billion in December of last year to $767.4 billion in March.
That’s a quarterly decrease of $48.90 billion.
The chief Asia foreign-exchange and rates strategist at Bloomberg Intelligence, Stephen Chiu, says a clear trend is underway.
“As China is selling both despite the fact that we are closer to a Fed rate-cut cycle, there should be a clear intention of diversifying away from US dollar holdings.”
The drop in China’s ownership of US bonds comes as former International Monetary Fund (IMF) deputy director Desmond Lachman warns that a fresh trade war between the two largest economies is brewing.
In a post on the Washington-based think tank American Enterprise Institute, Lachman says that both President Biden and former President…
