, Columnist
If China Sells Its U.S. Bonds, Trump Will Benefit
A sell-off would result in a weaker dollar, which would help reduce the U.S. trade deficit with China.
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U.S. business and political leaders have long worried that China’s large holdings of U.S. Treasuries might be a strategic vulnerability for America. Those fears were stoked this morning when the editor-in-chief of an English-language organ of the state media, the Global Times, tweeted that Chinese scholars were looking into ways to sell off Treasuries:
Some discussion about such a move wouldn’t be surprising. But if Chinese scholars want to be truthful, there is only one thing they can tell their leaders: Dumping U.S. Treasuries would not only wreak havoc with the Chinese economy, it would play right into Donald Trump’s hands.