China sold U.S. bonds again, setting a record for seven consecutive months, data shows that since the beginning of this year, the amount has reached $97.5 billion, and the balance of U.S. bonds held by China is only $769.6 billion, far below the lowest record since 2009. In reality, however, China's successive sell-offs may be much larger than that.
Looking back at the situation before February this year, China had seen a seven-month sell-off, but in March there was an increase in holdings. This increase was not actual, but was due to the anomaly of the US debt at the time. At that time, regional banks in the United States went bankrupt, triggering a financial panic, and many investors turned to buying U.S. bonds, causing them to be significantly more significant in the short term. Therefore, there is reason to suspect that China has been ** US debt for the past 15 months. In the middle of last year, although there was a slight increase in China's holdings of U.S. bonds for two months, this was most likely due to a small increase in U.S. bonds. Based on the observation of changes in U.S. debt**, we speculate that China's U.S. debt** may have been in place for more than two years.
Unlike China, there was an unexpected increase in holdings in Japan. Japan currently holds 1,098The $200 million in U.S. debt increased by $11.8 billion from the previous month. The previous month, Japan repaid more than $20 billion in U.S. debt, but this month it unexpectedly increased by another $11.8 billion. Could it be that Japan regretted the previous sell-off?
Since the beginning of this year, Japan's U.S. bond holdings have undergone many increases and decreases, and they have been fluctuating, and it is difficult to find a clear trend. For example, holdings in Japan increased significantly in March and then continued in the following months**, only to be added again in May. The following three months of sell-off followed from June to August, only to be seen again in September. This back-and-forth may reflect Japan's hesitation. On the one hand, out of the consideration of not wanting to offend the United States, Japan chose to continue to buy US bondsOn the other hand, due to the persistence of the yen exchange rate, US bonds had to be volatile.
For China, our strategy is always clear, regardless of how other countries operate. Over the past 12 months, we have not only continued to sell US Treasuries, but also increased our holdings**. This is the step we have taken, and it is also our strategy to deal with the international economic situation.
From the description of this article, we can see that China is continuing to ** US bonds, while Japan's holdings are increasing or decreasing volatility, reflecting the different strategies of the two countries in dealing with the international economic situation. China tends to turn to other assets such as ** to reduce its dependence on the U.S. economy, while Japan hesitates, fearing offending the U.S. on the one hand, and being affected by exchange rate fluctuations on the other, unable to act firmly.
As an editor, I am deeply aware of the importance of the impact of the international economic situation on all countries. China's strategy of increasing U.S. debt and increasing holdings is a positive response to the current situation, and also reflects the improvement of China's economic strength and sensitivity to risks. Through U.S. bonds and increased holdings, China has reduced its dependence on the US dollar in international financial markets, while also increasing its own financial safety reserves.
However, I believe that in the process of responding to the international economic situation, it is not just a simple strategy such as selling US bonds and increasing holdings, but also focusing on improving the domestic economic strength, promoting industrial structure upgrading and scientific and technological innovation, so as to achieve real economic independence and sustainable development.
In the face of global economic uncertainty and fluctuations in the international financial market, we should continue to strengthen our own strength, find new impetus for economic development, and have a higher ability to cope with risks. Only in this way can we better cope with changes in the international economic situation and maintain economic stability and sustained growth.