Where is the main battlefield of the "decisive battle" between China and the United States? The situation is still not good, but the situation is still not good, and the Chinese side has thrown away another 22.7 billion US debts, and the US side has "prepared" for war millions of times. What are the concrete results of the US side's "preparations for war"?
On the day of the 17th, the data released by the U.S. Treasury Department showed that in February 2024, the holdings of the top three overseas creditors of U.S. bonds, Japan, China, and the United Kingdom were differentiated: China reduced their holdings, and Japan and the United Kingdom increased their holdings. Among them, China reduced its holdings of US Treasuries by $22.7 billion to $775 billion in February, the second consecutive reduction since January 2024. At a time when the total U.S. federal debt has exceeded $34.6 trillion, China's dumping of another $22.7 billion in U.S. debt can be said to be a slash in the "artery" of U.S. dollar hegemony. In order to maintain the hegemony of the dollar and understand the prospects of the US debt crisis, the US has "prepared" a million times, that is, 1 million simulated forecasts, but the result is that 88% of the forecasts show that US borrowing is on an "unsustainable track". In other words, the U.S. debt is unbearable, and it's almost over. Obviously, the situation is not good. The U.S. side's million-time simulation of the U.S. debt outlook has also inadvertently exposed the weakness of the U.S. and made China more soberly see where the current main battlefield is.
So what are the reasons for the growing fiscal deficit and the piling up of debt problems in the United States? This is inseparable from two factors, the first is the reckless behavior of American politicians, although every US administration claims to reduce the deficit, and the Biden administration even claims that its budget includes tax increases for businesses and the wealthy to ensure fiscal sustainability and controllable debt service costs, but the actual result is that the more money is owed, the more money is owed, and the promises of those politicians are just to cheat votes; second, the domestic republic of the United States, There are serious differences between the two parties. This year is another year of the US presidential election, and the two parties have arguably reached the stage of tearing their faces, often for the sake of accusations, for example, Republicans who control the House of Representatives want to make deep spending cuts to reduce the ballooning deficit, but they have not specified what they will cut.
In the case of helplessness, the US side had to turn its attention to China, so we saw US Treasury Secretary Yellen visit China again and reached two new consensus with the Chinese side: one is led by the two Ministries of Finance to exchange views on the balanced growth of the two countries and the global economy under the framework of the China-US Economic Working Group; second, the People's Bank of China and the US Treasury Department take the lead in continuing exchanges on financial stability, sustainable finance, anti-money laundering and other issues under the framework of the Financial Working Group. In addition, after Yellen's visit to China, U.S. Secretary of State Antony Blinken will also start his visit to China. The purpose of Yellen's and Blinken's successive visits to China is also obvious, that is, to borrow money from China, persuade China not to reduce its holdings of U.S. bonds, and hope that China can increase its holdings of U.S. bonds. Perhaps they still have illusions in their memories of China's 4 trillion yuan to save the United States in 2008.
However, judging from the various negative trends of the United States on the China issue, the United States' "request for help" may really be an illusion. Not long after Yellen's visit to China, the United States announced new sanctions against China, and six Chinese companies were sniped, citing the fact that these companies violated the relevant provisions of the sanctions against Iran or helped produce and procure drones for use by Russia in special military operations and Iranian-backed Houthi shipping attacks in the Red Sea. This move by the U.S. has also brought the number of Chinese entities sanctioned by the Biden administration to 319, which has surpassed the number of former U.S. President Trump, who targeted Chinese companies with great fanfare earlier, in other words, the Biden administration's sanctions on Chinese companies are even more severe than during the Trump era, and this is also the largest number of Chinese companies sanctioned by previous U.S. administrations. While the US is wielding the big stick of sanctions against Chinese companies, it also wants China to help.
All along, China has always stressed that the essence of China-US economic and trade relations is mutually beneficial and win-win results, and maintaining the healthy and stable development of China-US economic and trade relations is in the fundamental interests of the two countries and peoples, and is conducive to global economic growth. The most important thing for the United States to do now is to abandon the zero-sum game mentality, establish an objective and rational understanding of China, and pursue a positive and pragmatic China policy.