Trade war: Are US government bonds China • Table.Briefings

View of the exchange headquarters of the Shanghai Composite Index.

Neither the US nor China are backing down in the trade war. The Chinese leadership is using US dependencies on critical minerals as leverage. China’s huge holdings of US government bonds also offer a target. However, a move away from the US dollar would harbor major risks for China.

In the trade war between the USA, the signs continue to point to escalation. Although US President Donald Trump is willing to negotiate, he does not want to take the first step. „The ball is in China’s court: China needs to make a deal with us, we don’t have to make a deal with them,“ his spokeswoman Leavitt quoted him as saying. Shortly afterward, Trump ordered new customs investigations into mineral imports from China.

Trade war: Are US government bonds China’s ‘nuclear option’?

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