In July this year, China sold $13.6 billion in U.S. bonds again, resulting in a further reduction in the size of U.S. bonds to $805.4 billion. U.S. Treasury Secretary Janet Yellen expressed concern and called on China to stop selling bonds.
According to authoritative data on Wall Street, the current debt of the United States has exceeded 33 trillion US dollars, and the bond interest that needs to be paid in the next ten years will exceed 10 trillion US dollars, which means that the tax money of American children and grandchildren will be mainly used to pay off debts.
Will there be a response to Yellen's suggestion?
Yellen's suggestion is a surprise that she wants China and the United States to strengthen communication, and the motivation behind this is questionable. As an American politician, there can be no doubt that all of Yellen's actions are in the interests of the United States.
At present, the debt crisis of the United States** has attracted the attention of the whole world, and in order to prevent the heavy losses caused by the collapse of the United States, many countries holding US bonds have begun to sell US bonds.
So why did Yellen simply ask China to stop selling US bonds? The reasons behind this are worth pondering.
This phenomenon is inseparable from the close ties between China and the United States at present. Recently, the top level of the United States has continued to call for China and the United States to strengthen communication and cooperation, and the outside world believes that there may be signs of improvement in the relationship between the two countries.
At this point in time, China's choice to sell U.S. bonds may be interpreted by the outside world as an acquiescence of the United States, which in turn will trigger other countries to follow suit. If countries around the world start to sell U.S. bonds, U.S. debt** will fall, leading to a tighter U.S. budget, and may even trigger a shake in countries' confidence in buying U.S. bonds.
If this continues, U.S. finances are at risk of collapse.
This is something that Treasury Secretary Janet Yellen cannot tolerate. A few months ago, she made a special visit to China and showed great friendliness in the hope that we would buy more US Treasuries. The United States** even said that if China buys $1 trillion in U.S. Treasury bonds, the United States will no longer interfere in the Taiwan issue.
Clearly, Yellen has done everything she can to secure this funding. However, the actual actions of the United States are very different from Yellen's rhetoric. As the U.S. arms sales to Taiwan continue to increase, we did not budge, but reduced possible losses by selling U.S. bonds.
It can be said that the United States is to blame for the debt problem of future generations of the United States. The United States** is accustomed to upfront consumption and does not care about the quality of life for future generations. They focus only on immediate benefits, not on the long-term future.
We don't believe Yellen's rhetoric, and we will sell US bonds at our own pace. So how will the United States respond to this situation?
Although the United States often acts hegemonically, they do not act in a face-saving manner, and do not care too much about image like the European aristocracy. Americans believe that only what they actually get their hands on is the most reliable.
Therefore, we need to remain vigilant, but at the same time, we must not stop moving forward and developing.
In a completely interest-oriented mindset, Americans often display a gesture of humility. This is especially evident in their ongoing quest to strengthen exchanges with China.
Over the past year or so, the United States has stepped up sanctions against China, especially in the military and economic fields, in an effort to stop China's development. In the military field, the US military often holds joint military exercises with Japan, South Korea, Canada and other countries in China's waters, and frequently intervenes in the Taiwan issue to Taiwan, trying to drag China into the predicament of an arms race, thereby affecting China's economic development.
The United States has upgraded its protection, imposed a ban on science and technology, Huawei has been suppressed, and the United States is trying to block China's independent research and development road and reap the benefits. China has counterattacked again and again, the Shandong aircraft carrier formation is approaching, the US military exercise in the Yellow Sea has been defeated, Huawei's new products have been released, and the technology ban has become a laughing stock.
When the U.S. sanctions were not effective and were gradually in a weak position in the contest with China, the U.S. changed its previous hardline attitude and tried to make us relax through sweet words.
The US high-level hope to strengthen communication may be to temporarily ease the contradictions, and wait for them to devise more insidious tactics before imposing comprehensive sanctions, which is their usual method.
Therefore, in the face of the sudden shift in the United States, we must remain vigilant, listen to their words and observe their actions, and more importantly, look at what they do, and simply listen to their rhetoric.
The fruitful results of the Belt and Road Initiative prove that without the participation of the United States, China can still seize the broad development opportunities, and the inherent vitality of China's economy is still very strong.
Therefore, no matter what the United States intends to do, the most important task for us at present is to continue to accelerate our own development and strengthen economic ties with the vast number of developing countries.
In the face of real strength, all other speculations are groundless.
Some people may say that as the world's largest economy, the United States will undoubtedly have a major impact on China's economic development if it gives up cooperation with the United States, and Sino-US cooperation will be of great benefit to both sides.
There is some truth to this view, but the problem is that it is not that we do not want to cooperate, but that the United States behaves in different words and gradually erodes our belief in active cooperation.
As for the economic and trade exchanges between China and the United States, there is no need to worry too much, the current trend of world economic globalization has been very obvious, and the people-to-people ties between China and the United States have been very close, and the United States cannot stop it through simple sanctions.
Under the current situation of great changes unseen in a century, the United States has its own problems and is still too busy to take care of itself, how much energy can be used to deal with us?