Chinese Economics Thread
- Thread starter Norfolk
- Start date
Was this before if after the meeting in anchorage?
Same month, March. I doubt that the meeting had any effect. China loves the dollar.
Just wait until they get sanctioned from using dollars lol
I’ll be very surprised if they’re still purchasing treasury now though; the fed has had to hike interest rates and noone’s buying us debt
If China wants to keep its currency stable, not to let it appreciate too much it has to buy dollars, because it has a huge trade surplus (dollars) with the USA and other countries around the world. In 2020 mostly Chinese banks bought the dollars now its bonds.
Nah, this is typical China. Nothing surprising.
US bans and sanctions Chinese companies like every month and denies them from using dollars
How China responds:
"Green Buck very good, very trustworthy. Biden China's friend. Buy more US Treasuries bonds, there is no way US will sanction us, right?"
Yes it seems like that on the surface but there is more nuance to this. Also US gov does not deny anyone from using dollars. If anything they promote that.
China conducts the majority of its global trade in US dollars. Although that is changing slowly, it will remain the case for a while more. The US can print itself into oblivion all it wants. The USD inside China is there for now (at least in part) to facilitate trade with other nations.
Playing games with its debt and the bonds China owns is just shooting itself in the foot for a tiny slice of what China has. They can do as they please and it won't matter that much so long as China maintains trade positions which is almost certain as the sun will rise.
Japan has about $1 trillion US debt, which is most of its $1.38 trillion foreign reserves. Japan will fall big when the US$ falls.
China has not increase its total US debt on hand for many years. They are just buying new US debt to replace expired debt.
