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On the international stage, the economic and trade interaction between these two giants has always attracted global attention. However, China's recent move has sparked widespread speculation and concern. In a series of economic adjustments, China is not only rapidly reducing its holdings of U.S. Treasuries, but also canceling a number of U.S. orders that had already been placed.
Once upon a time, China was the largest holder of U.S. Treasuries, but that status has recently been taken away by Japan. As China continues to adjust, it has gradually reduced its holdings of U.S. bonds. According to data released earlier by the US Treasury, as of February this year, China has reduced its holdings of US bonds for seven consecutive months, and its total holdings have fallen to the lowest level since June 2010. This dynamic suggests that China is accelerating its reliance on U.S. Treasuries. Some analysts believe that this may be in the context of Sino-US tensions, China is trying to diversify in overseas asset allocation to reduce risks.
However, the move also set off a chain reaction. As China continues to develop corn import channels from Brazil and South Africa, U.S. corn has gradually lost favor with Chinese buyers. Recently, according to Bloomberg, some Chinese buyers canceled orders for up to 832,000 tons of US corn in the past few weeks due to more affordable corn prices in Brazil. The analysis believes that this may only be the beginning of the "withdrawal tide", and there may be more similar situations in the future. If this trend continues, the U.S. dominance of the Chinese corn market is at risk of being lost. According to customs data, in the first quarter of this year, China imported 7.52 million tons of corn, of which 37.8% were imported from the United States, while Brazil's corn accounted for 28.8%.
Although the US commitment needs to be further observed, in any case, this has already had an impact on Taiwan's "Taiwan independence" forces and weakened their confidence. At the same time, the latest data from the US Treasury Department showed that China increased its holdings of US debt worth $20.5 billion, ending the previous "seven-day losing streak".
In short, the dynamic adjustment of China and the United States in the economic and trade field has aroused widespread concern. Whether it is the diversification of overseas asset allocation or the expansion of corn import channels, it is necessary to make a move in a complex international environment. With the development of various changes, both China and the United States are taking measures to try to ease tensions and maintain a stable international order.
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