China's US Treasury holdings lowest since 2017




In March 2019, China
In March 2019, China's US Treasury holdings fell by $10.  

China's US Treasury holdings fell in March to their lowest level in two years, with Beijing trimming its lending to the United States amid a protracted trade war, government data shows.

However, the modest decline came before this month's sudden crack-up in negotiations aimed at resolving the trade dispute.

In March, China's Treasury holdings fell by $10.4 billion to $1.12 trillion, the lowest level since May 2017, according to Treasury Department data released Wednesday.

The decline was the first since November.

China this week announced it was raising duty rates on $60 billion in US exports in retaliation for President Donald Trump's decision to do likewise on a $200 billion tranche of Chinese merchandise -- with plans to extend tariffs to all Chinese goods sold to the United States.

A Chinese state journalist also mused publicly about further retaliation, including the possibility that Beijing could cut its holdings of US debt.

However, Treasury Secretary Steven Mnuchin said Monday he expected the Chinese would continue to buy US Treasurys.

"I assume so. It's a good investment," he told reporters.

Dumping US government bonds could raise borrowing costs for Washington at a time when the budget deficit is rising. However, the US central bank could decide to purchase what China sells.

And in March, overall foreign holdings of US government paper actually rose by $88 billion, with other lenders more than making up for the decline in China's share.

COMMENTS

More Related News

China Is Buying Iranian LPG Despite Sanctions, Ship-Tracking Shows
China Is Buying Iranian LPG Despite Sanctions, Ship-Tracking Shows

(Bloomberg) -- After being hit by the trade war and U.S. sanctions on Iran, some Chinese buyers of liquefied petroleum gas from the Persian Gulf nation are finding it's too tough a habit to kick.China sourced around a fifth of its LPG -- used as cooking fuel, in cigarette lighters and to make plastic

Duterte Stands by China, Doubts Own Fishermen in Sea Collision
Duterte Stands by China, Doubts Own Fishermen in Sea Collision

(Bloomberg) -- Philippine President Rodrigo Duterte is standing by China over a collision involving the two nations' boats in the South China Sea, with his spokesman casting doubts on local fishermen's accounts of the incident.In his first public statement about what he described as a "maritime incident," Duterte said China's side should be heard on the collision that resulted in a Philippine vessel carrying 22 fishermen sinking in disputed waters on June 9. The crew were rescued by a Vietnamese fishing boat and a Philippine Navy ship."It is best investigated. I don't issue a statement now because there's no investigation and no result," Duterte said in speech at a Philippine Navy...

Why US-China trade war risks hurting firms in both countries
Why US-China trade war risks hurting firms in both countries

U.S. businesses are imploring President Donald Trump not to expand his tariffs to $300 billion in goods from China that have so far been spared in his trade war with Beijing. Huawei is at the heart of the trade war that Beijing is engaged in with the Trump administration, which has accused Chinese companies like Huawei of committing forced technology transfers from American companies and stealing their trade secrets.

Hong Kong activist Joshua Wong leaves jail, vows to join protests
Hong Kong activist Joshua Wong leaves jail, vows to join protests
  • World
  • 2019-06-17 14:53:31Z

Leading Hong Kong democracy activist Joshua Wong walked free from prison Monday and vowed to join historic anti-government protests rocking the finance hub, as activists kept up pressure on the city's embattled pro-Beijing leader. Organisers said some two million people -- more than a quarter of

China
China's Xi to visit North Korea this week ahead of G20

Xi Jinping will make the first trip to North Korea by a Chinese president in 14 years this week, state media said Monday, as Beijing tightens relations with Pyongyang amid tensions with the United States. Xi will visit Pyongyang on Thursday and Friday at the invitation of North Korean leader Kim Jong Un, said Chinese official news agency Xinhua. The timing is likely to raise eyebrows at the White House as it comes one week before the G20 summit in Japan, where US President Donald Trump expects to meet with Xi to discuss their protracted trade war.

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Latin America

facebook
Hit "Like"
Don't miss any important news
Thanks, you don't need to show me this anymore.