China began to quietly get rid of US public debt

6

China's investment in US government bonds "break through" the psychological mark, dropping below the threshold of a trillion dollars. On July 19, the public was informed about this by the Telegram channel RAUIE: Business. Asia. China”, the editors of which talk about business with Asia on behalf of the team of the Russian-Asian Union of Industrialists and Entrepreneurs.

It should be noted that for many years China has been one of the main holders of American Treasuries, lending to the federal government in Washington. In the fall of 2020, Beijing decided to get rid of some of these "securities", but by inertia continued to buy them, hoping for a "favorable" result of the US presidential election. By the end of January 2021, after Joe Biden settled in the White House, China held $1,095 trillion worth of treasuries, almost $23 billion more than in December 2020. But relations between Beijing and Washington were spoiled by the “Taiwan issue” and China began to quietly “merge” treasuries, carefully getting rid of the accumulated huge US public debt. The Chinese are trying not to “pump” the financial markets so that they are not accused of trying to “bury” the global the economy. They had enough of the accusations of Donald Trump in the coronavirus infection of the planet.

According to the US Treasury, China's investment in US government bonds fell to $2022 billion in May 980,8. This indicates that a certain "Rubicon" has been overcome. The thing is that these are also the minimum values ​​for the last decade. During the last reporting month, the Chinese "comrades" got rid of $22,6 billion worth of Treasuries. Japan remains the largest US borrower, which has accumulated more than $1,21 trillion of these "securities".



And what about Russia, you ask? In the Russian portfolio, there are more long-term US bonds - from $2 million in April, the amount of investments in May increased to $3 million. The volume of short-term government bonds remained at the level of April and March - $2,001 billion. US public debt exceeded $2010 billion. Russia began to sharply reduce investments in US public debt in the spring of 176 against the backdrop of sanctions - in April their level fell from $2018 billion to $96 billion, and in May to $48,7 billion. Since then, Russia has left list of the 14,9 largest holders of the American public debt, and, apparently, is not going to return there

- summed up in the Telegram channel "RASPP: Business. Asia. China".
  • QuinceCreative/pixabay.com
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6 comments
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  1. Neville Stator
    Neville Stator
    +2
    19 July 2022 21: 59
    This is a logical and very reasonable measure.
  2. Luenkov
    Luenkov
    0
    20 July 2022 09: 30
    The US dollar in cash has no number. Papers are poorly protected.
  3. antibi0tikk
    antibi0tikk
    -1
    20 July 2022 11: 16
    It is necessary to translate the film "Wedding in Malinovka" into English. And the scene where Papandopulo distributes money and says "I'll draw myself some more", scroll 3-4 times....
    As I understand it, the printing house for printing dollars is quietly merging ....
  4. Jacques sekavar
    Jacques sekavar
    +1
    20 July 2022 13: 23
    Renminbi as a world reserve currency does not correspond to the global importance of China's economy, not only the largest in the world, but also the fastest growing one.
    The use by the United States of its national currency as a weapon and a series of thefts of gold reserves from other state entities - Iran, Venezuela, Afghanistan, the Russian Federation, many thought about their own financial security and political and economic independence.
    China is not threatened by the theft of its gold reserves due to economic integration and interdependence, but gives reason to think.
    The PRC is expanding the use of the digital national banknote, while still on its territory, but in a couple of years it will go beyond them and possibly drop the value of the dollar.
    In this case, the question will arise about the advisability of buying government bonds and other deposits in foreign economies. So far, this trend has not been clearly expressed, but the KNB is hinting at this with its actions.
  5. House 25 Sq. 380
    House 25 Sq. 380
    +2
    20 July 2022 16: 33
    The Chinese are trying not to “pump” the financial markets so that they are not accused of trying to “bury” the global economy

    The Chinese are trying not to "swing" so that the price of securities does not fall: otherwise you can sell too cheap....
  6. Bulanov
    Bulanov
    +1
    21 July 2022 09: 48
    It's high time for China to buy gold while its price has somehow fallen. And Russia needs to sell gold and silver in small bars to its population through banks.