Since the beginning of this year, the international gold price has soared, triggering turmoil in the global financial market. The West began to hype China's role in pushing up gold prices, and compared China's U.S. bonds and purchases with the so-called "attack on Taiwan". The well-known German anti-China ** "Deutsche Welle" even quoted so-called "experts" to give an explanation, claiming that China is the driving force behind the gold price**. However, there is actually no connection between China's additional purchases** and the "attack on Taiwan".
Although China has increased its reserves, it is not unique to China. According to data released by the World Association, in the first three quarters of this year, global central bank purchases increased by 14% year-on-year to a record 800 tons. Although China's gold purchases are as high as 200 tons, ranking among the highest in the world in terms of data, China's ** reserves are still relatively low compared to the 8,000 tons of ** reserves in the United States. Therefore, China's additional purchases** are aimed at maintaining its own foreign exchange stability and adjusting part of its portfolio against the backdrop of the global central bank's general US bonds.
The fundamental reason for the international gold price** is not China's **purchase. In fact, the unbridled monetary easing in the United States has exacerbated the potential debt crisis, especially the Federal Reserve's 11 large interest rate hikes in 2022, turning holding Treasury bonds into a loss-making trade. As a result, central banks in many major economies, including China, have chosen to sell or even sell US bonds. China currently holds less than $800 billion in U.S. debt, and has had to increase purchases in order to maintain foreign exchange stability**.
The logic behind the international gold price** is the irresponsible financial policy of the United States. Therefore, it is unreasonable to compare China's ** purchase with the "attack on Taiwan".
Contrary to the German media's claim of "preparations for an attack on Taiwan", there is no indication that China is making such preparations. Preparations for war usually include large-scale equipment and personnel transfers, but there are currently no ** reports about such cases in China. It is even more untenable to compare China's additional purchases** with Russia's gold purchases. These anti-China propaganda machines are not only stupid, but also malicious.
However, we need to focus on the motivation behind it. Recently, global attention has focused on the situation in places like Gaza and Ukraine. At this time, the sudden speculation of international gold prices and the situation in the Taiwan Strait is likely to divert attention. Due to the lingering resolution of the Palestinian-Israeli conflict and the Russia-Ukraine conflict, the whole world has seen the irresponsibility and moral image of the United States disintegrate, and even began to question the military capabilities of the United States as a hegemonic power. From the point of view of the West, they prefer to focus the world's attention on China rather than on the ugliness of the United States. However, it is difficult for this kind of shoddy hype to deceive the eyes of the world under the general trend of the east being strong and the west weak.
Summary: The outside world's concerns about China's **US bonds and additional purchases** are unfounded. The reason for the international gold price** is the unrestrained monetary easing policy of the United States, while China's additional purchases** are to maintain foreign exchange stability. The "preparations for attacking Taiwan" declared by the German media have no basis at all, and are just a means for the West to divert its attention. In the current situation of gradual changes in the balance of power between the East and the West, these shoddy hype tactics can only deceive for a while and cannot reverse the situation. China should pay more attention to the motives behind it, remain calm and rational, and not be swayed by groundless accusations from the outside world. China has the ability and wisdom to respond to external challenges and safeguard its core interests.