-
China’s brinkmanship over dumping US Treasuries is bound to backfire
Treasuries, trade and tariffs are a combustible mix at the best of times, but with trade tensions between China and the United States already on the rise, even the suggestion that Beijing could pare, or even stop, its purchases of US government paper should be avoided. It’s simply not in Beijing’s interests to weaponise its holdings of US Treasuries. In the first place, it’s important to note that it’s not just Washington that has issues about what it perceives as unfair trade practices being employed by China. The European Union (EU) instituted new trade defence rules on December 20. The accompanying press ... (full story)