American Debt: Beijing's Economic Options Worry Markets
China sells $18.9 billion of U.S. debt, falling to third place globally.
The United Kingdom surpasses Beijing in debt, with debts amounting to $779.3 billion.
Moody's has downgraded the U.S. credit rating, raising concerns about the financial sustainability of the United States.
The Chinese economy now prefers to shorten its maturity and secretly diversify its reserves.
Economic relations between Beijing and Washington are fraught with disruptions, temporary agreements, and repeated disappointments. The latest example of this is the suspension of tariff increases for 90 days. However, this diplomatic pause offers no guarantee of lasting stability for the global economy. Furthermore, China has just sent a signal that seems like a monetary provocation. In March, China significantly reduced its holdings of U.S. debt. A decision that could rekindle tensions.
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