According to Xi Yunyang, Professor at the Shanghai University of Finance and Economics, China could be ready to dump the entire US debt in case of a military confrontation between both countries.

“Under normal circumstances, China will gradually sell Treasuries and reduce its balance sheet to about $ 800 billion. But in the event of an extreme scenario, for example, a military conflict, China can sell the entire US national deb,” he added in an interview with the Global Times.

While this is an unofficial declaration, it is a threat for the United States and could plunch the world into recession.

The PRC used to be the largest holder of the US national debt, but recently shifted on second place behind Japan. Currently, China holds around $1 trillion in US bonds.

While the move would hurt China itself, it is made clear that this would only be a worst-case scenario.

China fears further sanctions imposed by the United States under the premise of violating human rights in Hong Kong and Xinjiang and ultimately worries about a possible disconnect from the global financial system.

While it is unclear what happens between both countries in the future, China eagerly awaits the upcoming November elections in the United States to prepare for whatever outcome.

 

Share this article:
  •  
  •  
  •  
  •  
  • 1
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
    1
    Share
ALSO READ  Rare satellite image captures Chinese submarine entering hidden cave base

Notice: All comments represent the view of the commenter and not necessarily the views of AMN.

All comments that are not spam or wholly inappropriate are approved, we do not sort out opinions or points of view that are different from ours.

This is a Civilized Place for Public Discussion

Please treat this discussion with the same respect you would a public park. We, too, are a shared community resource — a place to share skills, knowledge and interests through ongoing conversation.

These are not hard and fast rules, merely guidelines to aid the human judgment of our community and keep this a clean and well-lighted place for civilized public discourse.

Improve the Discussion

Help us make this a great place for discussion by always working to improve the discussion in some way, however small. If you are not sure your post adds to the conversation, think over what you want to say and try again later.

The topics discussed here matter to us, and we want you to act as if they matter to you, too. Be respectful of the topics and the people discussing them, even if you disagree with some of what is being said.

Be Agreeable, Even When You Disagree

You may wish to respond to something by disagreeing with it. That’s fine. But remember to criticize ideas, not people. Please avoid:

  • Name-calling
  • Ad hominem attacks
  • Responding to a post’s tone instead of its actual content
  • Knee-jerk contradiction

Instead, provide reasoned counter-arguments that improve the conversation.

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments