China Sells Record Sum of US Debt Amid Signs of Diversification

2 comments

1. China sold a record $53.3 billion of US Treasury and agency bonds in the first quarter of 2024, likely due to escalating trade tensions and a desire to diversify its assets. This move is raising concerns as China is a major holder of US debt and its actions could impact the US economy. Additionally, China has been increasing its gold reserves, potentially as a way to mitigate sanctions risk.

2. I am worried all this decoupling signals an upcoming war over Taiwan.