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China holding US debt is not really a great weapon. If they dump it, they will experience incredible losses, and it is not clear if the effect on the US will ac
by drak0n1c 8y ago
China holding US debt is not really a great weapon. If they dump it, they will experience incredible losses, and it is not clear if the effect on the US will actually be proportionately harmful. The USD would drop and US exports may be advantaged.
https://www.scmp.com/news/china/economy/article/2160270/why-trade-war-wont-prompt-beijing-dump-its-us-treasuries https://www.scmp.com/news/china/economy/article/2160270/why-...
There are also many mitigating factors that the US can deploy:
https://www.cfr.org/blog/what-would-happen-if-china-started-selling-its-treasury-portfolio https://www.cfr.org/blog/what-would-happen-if-china-started-...
https://www.quora.com/What-would-happen-if-China-sold-all-of-its-US-bonds-in-one-shot https://www.quora.com/What-would-happen-if-China-sold-all-of...