Quote (Hamsterbaby @ Feb 21 2023 04:55pm)
If they don't sell it , it will harm China even more.
The three major holders of US Debt in the World is China, Japan and Saudi Arabia.
You should see what is happening now. Japan was selling her US Debt until recently when they are being coerced to buy back some.
That's simply not true. Unless you predict the US will default on its debt?
Just a couple of points that describe the status quo,
"A country like China, which saves more than it invests domestically, is typically an international lender.
To avoid inflation, the Chinese central bank removes this incoming foreign currency by purchasing foreign assets"
"The biggest effect of a broad scale dump of US Treasuries by China would be that China would actually export fewer goods to the United States."
Dumping US bonds would damage China much more than it would damage the US. US bonds are desirable commodities, and will remain so; They would be purchased by someone else.
Especially because if China drops 1 trillion dollars of bonds on the market, the price of those would be less than what China paid.