After cordial Xi-Trump summit, could China’s US dollar pivot cause tremors? - South China Morning Post
After cordial Xi-Trump summit, could China’s US dollar pivot cause tremors? - South China Morning Post
Source: South China Morning Post
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DW NOTE
China holds $750 billion in Treasuries — down from $1.3 trillion a decade ago — and has spent years trying to reduce dollar dependence without triggering capital flight. A "pivot" only causes tremors if you assume Beijing hasn't been executing it in slow motion since 2014. The question isn't whether China diversifies reserves; it's whether anyone still pretends the 10-year at 5.28% is compatible with America's 6%-of-GDP deficit without a captive buyer of last resort.