China set a new record in the first quarter of 2024 by selling a substantial amount of Treasury and US agency bonds, signaling its strategic move to diversify away from American assets amid ongoing trade tensions. Based on data from the US Department of the Treasury, Beijing offloaded a total of $53.3 billion in Treasuries and agency bonds during this period, with Belgium, often viewed as a custodian of China’s holdings, also selling $22 billion of Treasuries.
These actions have drawn attention from investors, particularly in light of escalating tensions between the US and China. President Joe Biden's implementation of tariff hikes on Chinese imports and the potential for further measures by former President Donald Trump, if re-elected, have intensified concerns.
Stephen Chiu, chief Asia foreign-exchange and rates strategist at Bloomberg Intelligence, noted that China's selling of US securities indicates a deliberate effort to diversify its holdings away from the US d ...
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