China still needs to hold US Treasury debt


Illustration: Liu Rui/GTThere has been no short of calls for sell-off of US Treasuries in China over the past decade, but such a decision should by no means be a political one.The foremost reason why China cannot consider selling its massive US debt is that other markets – spot, reserve, futures, and gold – have no capacity to absorb such a large amount of assets. What kind of assets other than US Treasuries could be China’s new option for foreign exchange reserve? Relevant decisions and choices must make business sense, not political sense.Indeed, certain individual US congressman recently sa…

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