Recently, the Sino-US trade war has escalated, and the Sino-US financial war is even more dazzling! The sudden increase in tariffs on Chinese products by the United States, although it only involves $18 billion in goods, still has a relatively large impact on China.
Just the day after the announcement, the stock market fell. On May 15 and 16, China's stock market did not rise decently. Originally, at noon on May 15, the stock market in Shanghai and Shenzhen rose gratifyingly, but unfortunately there was a wave of decline in the afternoon, and there were obviously funds not optimistic about the stock market.
The latest data released by the U.S. Treasury Department shows that China is indeed reducing its holdings of U.S. Treasury bonds, although not much, but it is of great significance. Of course, China's sale of $7.6 billion in U.S. Treasury bonds was less than a fraction of the international capital inflow into U.S. Treasury bonds that month.
In March, international investors bought $119.9 billion in U.S. Treasury bonds. Of course, the accounts between countries are not all economic accounts, and the US Treasury bonds are slowly being sold, and of course they cannot be sold all at once. The Sino-US financial war and the Sino-US trade war will eventually be reflected in the difference in the level of economic competition between the two countries.
In any case, time is on the Chinese side.