Biden should ask China to bless U.S. bonds, and as soon as China agreed to the request, the U.S. ban

Mondo Finance Updated on 2024-02-05

FaceU.S. TreasuriesUnder the pressure of the crisis, the United States **Biden sent his assistant ** Naiman to lead a financial delegation to Beijing, hoping that China can bless itU.S. Treasuriesto solve the American oneDebtIssue. However, shortly after the talks between the two sides in depth communication, the United States imposed sanctions on China to ban battery purchases. This series of moves has raised concerns about why the United States has suffered so muchDebtPressure? Why did you get help from China but "take revenge"? How is China responding? Let's dive deeper into a few aspects**.

1. The background and causes of U.S. debt stress

After entering 2024,U.S. TreasuriesThe total size has exceeded $34 trillion, and it is growing faster and faster. If there is no oneOverweightU.S. Treasuries, not onlyUnited States**There are not enough funds to run, dollars "World currency"There will also be challenges to the status. Therefore, the United States urgently needs to be able to take overU.S. Treasuriescountries. China is the second largest in the worldEconomybody, not only in 2008 onceOverweighteverU.S. Treasuries, and itsEconomyIt's huge, and it can provide substantial help.

2. The significance and motivation of China's increase in U.S. bonds

China opted for $12.4 billion in November last yearU.S. Treasuries, releasing the willingness to continue to strengthen economic and trade cooperation with the United States, and in line with China itselfEconomyThe need for development. However, China's move is only a drop in the bucket for the United States. The U.S. deficit surged by 50% in December, while the Federal Reserve also posted a loss, and the U.S. is expected to be likely to do so this yearDebtDefault. In addition, the situation of inflation in the United States** has also causedEconomyPlight.

1. The United States sent an assistant to China for help

Recently, U.S. Assistant Naiman led a financial delegation to China for talks with the Chinese side and had in-depth communication on financial issues. Although the specific results of the talks have not yet been announced, the two sides confirmed that they will continue to maintain communication. For the United States, blessingsU.S. Treasuriesis one of their top concerns, and China still stopped ** in NovemberU.S. TreasuriesThe practice of showingU.S. TreasuriesIt is still one of the important asset allocation products in China.

2. The United States imposed a ban on purchases against China after the talks

However, justifiablyChina and the United StatesSoon after the financial talks between the two sides, the United States imposed a battery ban on six Chinese companies, which is another example of the unreasonable sanctions imposed by the United States on Chinese companies under the pretext of the so-called "**" in recent years. On the one hand, the United States is still eager for China's help, but on the other hand, it has not really shown its sincerity in "asking for help."

1. Do not have high expectations for the United States to fulfill its commitments to China

In the face of frequent U.S. sanctions on Chinese companies, China should maintain its strategic focus, not be disrupted by U.S. practices, and not have high expectations for the U.S. to fulfill its commitments to China. China needs to continue to enhance its own strength and resolutely counter the United States' efforts to contain China in order to protect China's interests.

2. Continue to walk your own path

China needs to continue to follow its own path of development and strengthen its domestic strengthEconomytransformation and upgrading, improve their own strength and anti-risk ability. At the same time, strengthen economic and trade cooperation with other countries and gradually get rid of the United StatesEconomyover-dependence.

3. Maintain the stability of the international chain and energy

In recent years,InternationalChainwithEnergy** Instability to the globeEconomyIt has caused a lot of trouble, and China should actively participate in itInternationalCooperation, maintenanceChainwithEnergy** Stability for the worldEconomyto make their own contribution to the healthy development of the country.

5. Summary

AmericanDebtThe pressure is mounting, and China is the second largest in the worldEconomyThe body itself is also facing a lot of challenges. The imposition of sanctions on China while the United States continues to seek China's help will only increase tensions between the two sides. In the face of such a situation, China needs to maintain its strategic focus, continue to follow its own path of development, and gradually reduce its commitment to the United StatesEconomydependence. At the same time, China should also be actively involvedInternationalPartnering to sustain the worldChainwithEnergy** Contribute to the realization of sustainable development.

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