There have always been calls for China to diversify its US$3 trillion in foreign exchange reserve holdings, around one-third of which are held in US Treasuries. Photo: EPA-EFE
Coronavirus: China could cut US debt holdings in response to White House Covid-19 compensation threats, analysts say
- US news reports suggest White House officials have already considered the idea of cancelling all or part of the US$1.1 trillion debt owed to China
- In response to the debate over the highly unlikely ‘nuclear option’, China could cut its holdings as the US ramps up borrowing to pay coronavirus-related costs
Topic |
Coronavirus pandemic
There have always been calls for China to diversify its US$3 trillion in foreign exchange reserve holdings, around one-third of which are held in US Treasuries. Photo: EPA-EFE