China’s State-Run Global Times Newspaper Declares Victory In The Trade War.
Reuters reports any effort to reduce its U.S. Treasury portfolio would “inflict significant harm on U.S. finances and global investors, driving bond yields higher and making it more costly to finance the federal government.” But, the report notes, China’s leverage with treasuries is only good for as long as it holds them—suggesting any threat it poses may be empty.
In the past five years, China has dropped about $150 billion in U.S. debt. It owns about one-fourth of the foreign holdings of U.S. debt, which in turn is only about a quarter of all U.S. debt. The U.S. government itself is actually the largest holder of U.S. treasuries.
But that hasn’t stopped China from declaring victory in the trade war. The state-run English-language Global Times newspaper published an editorial titled “Trade counterstrikes give US painful lessons to learn.”
The editorial states:
“China’s counter tariffs are a spectacular way of standing up to America’s bullying tactics, not only for itself, but for other countries threatened by the US’s new trade policies.
“Hawkish politicians in Washington have obviously overestimated the capability and endurance of the US economy in a trade war, since they believe they can do whatever they like. China has shown a great deal of restraint for now, but if the US persists in this trade war, China is ready to fight to the end.
Full article: Report: China’s U.S. Treasuries are ‘Nuclear Option’ (TruNews)