The U.S. escalated the U.S.-China trade war, and the renminbi continued to fight back against the dollar. Without warning, the United States even launched a Sino-US trade war and imposed additional tariffs on $18 billion of China's exports, on the premise of repeated high-level dialogues between China and the United States. This is indeed a lot of pressure on China.
This was evidenced by the fact that China's stock market did not show a decent rally the next day. There are still concerns about further economic harassment in the United States. It is not surprising that China will continue to reduce its holdings of U.S. Treasury bonds in the latest statistics in March 2024.
The recent issuance of 50-year ultra-long-term treasury bonds is also an effective means to attract international funds into the Chinese market, and China's reduction of its holdings of U.S. bonds is also China's latest measure to counter the dollar. From a purely economic point of view, then increasing holdings of U.S. Treasuries should be a good choice. Because in the month of March, international capital inflows into US Treasury bonds amounted to $119.9 billion, while the renminbi reduced its holdings by $7.6 billion. Japan and the United Kingdom, the second and third largest holders of U.S. Treasuries, are both increasing their holdings of U.S. Treasuries.