The size of the US debt has increased by $1 trillion in just three months, reaching an all-time high of $34 trillion. This figure far exceeds the previous ** of financial experts, highlighting the dire economic situation facing the United States at this stage. According to U.S. financial institutions, the U.S. GDP will reach 26$2 trillion, which is shocking, with the current financial situation of the United States, it is difficult to do so even if all the annual revenue is used to pay off the debt. More worryingly, if the United States continues to face complex situations such as debt expansion and the naval Red Sea crisis in the future, it will lead to turmoil in global financial markets, and the threat of a recession and debt crisis will plague the United States.
In view of the difficulty of solving the debt problem on its own, the United States** has once again set its sights on China, hoping to get China's support. Although China helped the United States in the past by increasing its holdings of U.S. debt during the subprime mortgage crisis, there are still tensions in the U.S.-China relationship. The United States has pursued a high-pressure policy against China, forcing China to cooperate on the one hand, and trying to contain China's rise on the other. China has also made it clear that if the United States wants to cooperate with China, it should be consistent in action and rhetoric, and should not continue to suppress the other while one side is seeking cooperation.
In order to seek China's help, Biden and Treasury Secretary Yellen respectively wrote personal letters to the Chinese side, expressing their willingness to cooperate. In the letter, Biden emphasized the importance of U.S.-China cooperation to world prosperity, while Yellen said she was ready to visit China again and briefly reported on the goals and plans for U.S.-China economic and trade relations. However, the various pressures and interventions of the United States on China in the past have made China not eager to help the United States in the financial aspect, and China's sale of US bonds is a decision to prevent political and diplomatic risks, and can also promote the internationalization of the RMB.
A spokesperson for China made it clear that he hoped that the United States would not seek cooperation with China while suppressing and encircling Chinese companies. China has accelerated its action on U.S. bonds, and the total amount of U.S. bonds it currently holds is as low as $769.6 billion, compared with the peak in 2013, it has reached $550.4 billion, with a sell-off ratio of more than 40%. China's best decision is based on the current economic and financial situation, which can not only prevent political and diplomatic risks, but also avoid the risk of US debt default and promote the internationalization of the RMB.
Although the United States wants China to help solve its debt problem, its high-pressure attitude towards China is obvious. Judging from the actions of the general aircraft carrier "Carl Vinson" stationed in the South China Sea and the joint military exercises with the Philippines, the United States has not relaxed its suppression of China, and its hegemonic thinking and containment of China have not stopped. China's attitude towards the United States is very clear, and it is very normal for China to be unwilling to help the United States in financial terms.
To sum up, the dire situation of the U.S. debt problem has led the U.S. to hope that China will intervene to contain the U.S. debt tsunami. In addition, the article can also be summarized from the following aspects:
1.U.S. Debt Crisis: The U.S. debt is growing rapidly, exceeding $34 trillion, and it is unable to repay its debt through annual revenues. This will further weaken the U.S. economy, potentially triggering a recession and debt crisis.
2.U.S. Seeks China's Help: The U.S. hopes that China can help contain the U.S. debt tsunami and support the U.S. economy by increasing its holdings of U.S. debt. Both Biden and Yellen expressed their readiness to work with China and called on China to take responsibility to further develop U.S.-China relations.
3.China's response and actions: China has accelerated the sell-off of U.S. bonds, and its holdings have fallen to $769.6 billion, or more than 40%**. The Chinese side said that it hopes that the US side will be consistent in its actions and words, and will not seek cooperation while increasing pressure on China.
4.The hegemonic thinking and ambivalent attitude of the United States: The United States has adopted a policy of containment against China and continues to provoke on issues such as the South China Sea. However, China is not willing to help the United States financially unless the United States shows a sincere willingness to cooperate.
5.China's Decision and Position: China's sell-off of U.S. bonds is based on its own interests. It can not only prevent political and diplomatic risks, but also avoid the risk of US debt default, and promote the internationalization of the renminbi. China has made it clear that it hopes that the United States will not seek cooperation while suppressing and encircling Chinese companies, so it is unwilling to provide financial assistance to the United States.
In short, the U.S. debt problem is severe, and seeking China's help is one way to solve it. However, the contradictions between China and the United States and the blind China policy of the United States have caused China to adopt a wait-and-see attitude towards providing help and protecting its own interests. China has accelerated the sale of U.S. bonds, with the size of U.S. bonds exceeding 40%. China hopes that the US side will be consistent in its actions and words to promote the development of China-US relations.