Call for “China should further reduce US bonds”
China needs to further reduce its US bond holdings to reduce Washington’s potential influence.
China needs to further reduce its US bond holdings to reduce Washington’s potential influence, according to a paper published by a Chinese state-owned think tank.
Di Dongsheng from Renmin University wrote in an article published in the journal China Institutes of Contemporary International Relations that China’s US presence position is “increasingly turning into a hostage situation and preventing it from protecting national sovereignty.” Di also referred to Chinese President Xi Jinping’s emphasis on “protecting territorial integrity” on the global stage.
Reminding that the USA froze Russian assets after Russia’s invasion of Ukraine, Di cited the USA’s seizure of German goods during the First World War, the treatment of Japanese goods during the Second World War, and the imprisonment of Japanese Americans, and said: “The USA’s violation of property rights “The commitment to respect and protection of human rights is just a myth,” he said. Di also argued that “yields on U.S. government bonds have been low for a long time” and that the returns China is getting are less than what American investors are getting in China.
Chinese holdings of U.S. bonds have been on a downward trend for several years, reaching their lowest level since 2009 last October. China is the second country that holds the most US bonds, after Japan.