On October 17, the U.S. Treasury released its report on international capital flows for August, highlighting a set of data about China's reduction of U.S. Treasury holdings that garnered significant attention.
According to the report, China reduced its holdings of U.S. Treasury securities by $1.9 billion, bringing its total holdings down to $774.6 billion, the lowest level since 2009.
This shift has sparked widespread discussion in the market and underscores the increasingly tense economic relationship between China and the U.S.
In the current global economic climate, the U.S. national debt has surpassed $35 trillion, roughly 120% of its GDP.
Against this backdrop, China's reduction undoubtedly accentuates the issue of U.S. debt, further heightening the anxiety of the U.S. government.
This move is widely interpreted as a small response from China to the frequent sanctions imposed by the U.S., reflecting a strategic adjustment in China's stance in the international financial market.
As the world's largest economy, the U.S. faces enormous debt pressures and urgently needs external capital to ease its economic strains.
In the past, China was a major "buyer" of U.S. debt, becoming one of the largest holders of U.S. Treasuries after Japan.
However, with the deterioration of Sino-U.S. relations in recent years, particularly in technology and economic sectors, China has gradually begun to adjust its investment strategy regarding U.S. Treasuries, decreasing its holdings while increasing investments in other assets, such as gold.
Since the trade war began, China has taken a more proactive stance in responding to U.S. economic policies.
By gradually reducing its dependence on U.S. Treasuries, China is not only adjusting the structure of its foreign exchange reserves but also safeguarding its own economic security.
Recent data show that China's central bank increased its gold holdings for 18 consecutive months as of April this year, indicating deep concerns about U.S. hegemony and a determination to seek a safer and more robust foreign exchange reserve system amid a complex and volatile international economic environment.
In light of China's continued reduction of U.S. Treasury holdings, the U.S. clearly feels a profound sense of crisis.
In her speech on October 17, Treasury Secretary Janet Yellen pointed the "finger" at China, claiming that China has failed to address U.S. concerns and absurdly asserting that "it is impossible to reward China."
This statement is not only ironic but also reflects the U.S.'s helplessness in facing its own economic predicament.
The high level of U.S. national debt is a result of its own policies, and is not directly related to China's reduction of holdings.
Should the U.S. reflect on its policy missteps that have led to pressures and sanctions against China in various fields?
Yellen's remarks reveal the hegemonic nature of the U.S., attempting to cover up its own economic issues by blaming China.
The U.S. aims to compel China to make economic concessions in order to maintain its hegemonic position.
However, as many analysts have pointed out, such thinking is undoubtedly "daydreaming."
In this context, the U.S. Treasury also imposed sanctions on three companies and a Chinese citizen on the same day, citing allegations that China provided drone technology to Russia.
The sensitivity of this action inevitably raises the question of whether China's reduction of U.S. Treasury holdings has become a trigger for U.S. pressure.
The U.S. sanctions against Chinese companies seem to be escalating rather than abating.
The various pretexts for suppression are not merely aimed at limiting China's development, but more so at forcing China to compromise on trade issues.
However, such obstinate behavior will only lead to "digging their own grave."
Sanctions against China will ultimately not suppress its development as the U.S. wishes; rather, they may provoke more active countermeasures from China.
In response to the ongoing targeting by the U.S., China has swiftly taken retaliatory actions.
At the 2024 Financial Street Forum, the Governor of the People's Bank of China explicitly mentioned stabilizing and promoting the internationalization of the renminbi to counter U.S. hegemonic policies.
The acceleration of renminbi internationalization not only reflects China's economic strategy but also serves as a counter to U.S. hegemony.
The U.S. attempts to restrain China's rise through economic means, leveraging the dollar's dominant position, but as the internationalization of the renminbi advances, the dollar's hegemony faces increasing challenges.
It is noteworthy that, in response to the U.S.'s various improper actions, some Chinese enterprises have begun to learn to use legal means to protect themselves.
DJI Technology officially sued the U.S. Department of Defense on October 18, opposing its inclusion of DJI drones on the sanctions list.
This move is not only a strong rebuttal against U.S. unfair treatment but also showcases Chinese companies' determination and capability to safeguard their rights in the international market.
Additionally, after facing sanctions, Huawei independently developed the Kirin chip, successfully breaking its dependence on U.S. technology.
These examples demonstrate that Chinese enterprises are gradually evolving into a formidable force capable of withstanding external pressures.
Through these proactive measures, Chinese companies are not only exhibiting greater resilience and intelligence in responding to U.S. hegemony but also sending a clear message to the international community: China is no longer the country that can be easily manipulated.
In the face of the Sino-U.S. trade war, China consistently upholds the principle of win-win cooperation, emphasizing friendly exchanges, and hopes that the U.S. can awaken in a timely manner.
Only through unity and cooperation can the two countries create a better future and promote stability and development in the global economy.
China's reduction of U.S. Treasury holdings is not only a reaction to U.S. policies but also marks the beginning of China's new image in the global economy.
In this era filled with challenges and opportunities, only through rational dialogue and cooperation can China and the U.S. find a path to mutual development and achieve win-win goals.
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