[ALMASDARNEWS] 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.| Then by all means let us avoid a military confrontation until we are completely disengaged economically. |
| Perhaps China should sell while the selling is good. If they dump the things they’ll take a huge loss, and the Chinese economy has too many problems to deliberately take a huge loss just when they need the funds to fight a war. That would cause them to lose the war faster than the approaching American missiles. |
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
One man's rights are another man's existential threat.
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.