Exclusive: China not seriously considering U.S. Treasuries as trade war weapon

0
189
© Reuters. China


© Reuters. China’s ambassador to the United States Cui Tiankai answers reporters questions during an interview with Reuters in Washington

WASHINGTON (Reuters) – China’s ambassador to the United States said on Tuesday he does not believe Beijing is seriously considering using its massive U.S. Treasury debt holdings as a weapon in the U.S.-China trade war, citing concerns that such a move would destabilize financial markets.

“We don’t want to cause any financial instability in global markets. This is very dangerous, this is like playing with fire,” Ambassador Cui Tiankai told Reuters in an interview when asked if China would consider selling Treasuries or reducing purchases should trade tensions worsen.

“I don’t think anybody in Beijing is thinking seriously about this. It could backfire,” he added.

Trade and economic analysts have often said China could slow its purchases of U.S. Treasuries or sell off its holdings to pressure Washington into a deal.

China is the largest foreign holder of U.S. Treasury debt, with $1.15 trillion on Sept. 30, according to the latest Treasury data, compared with $1.19 trillion a year earlier. As of Monday, there was about $15.97 trillion of total public Treasury debt outstanding.

Cui said China’s Treasury holdings were a good example of the economic interdependence between the United States and China — a relationship that he said would be nearly impossible and dangerous to untangle.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here