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
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
Economy /  China Economy

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

Karen Yeung
Karen Yeung

Updated: 8:39am, 7 May, 2020

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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
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
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