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OnlinePoker

(5,844 posts)
Wed Jan 25, 2023, 09:55 AM Jan 2023

China divesting themselves of U.S. Treasuries...prelude to war?

In just one year, China has lowered their U.S. treasury holdings by $200 Billion. We know China is looking to invade Taiwan at some point in the future which would bring it into direct confrontation with the U.S. At what level of treasury holdings do they decide they can write off the remaining amount in exchange for their invasion?

https://ticdata.treasury.gov/Publish/mfh.txt

7 replies = new reply since forum marked as read
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PortTack

(34,772 posts)
1. China is in serious trouble financially. They no more have the ways or means to invade Taiwan
Wed Jan 25, 2023, 10:12 AM
Jan 2023

Right now than Russia does!!

Irish_Dem

(58,840 posts)
5. Exactly, precisely why China is even more dangerous now.
Wed Jan 25, 2023, 10:58 AM
Jan 2023

Nothing like a good war to distract the Chinese people from domestic issues.

PortTack

(34,772 posts)
6. For an in-depth view of their deep troubles take a look at geopolitical experts
Wed Jan 25, 2023, 12:17 PM
Jan 2023

Peter zeihan and George Friedman.

Your point is noted..but. XI is smarter than that. He is currently looking at Russian and all but demanding they stop this senseless war..why? Because it hurts them too.

dutch777

(3,504 posts)
3. Xi has a lot of issues to handle--politically and economically
Wed Jan 25, 2023, 10:40 AM
Jan 2023

He is not unlike Putin, liking the centralized power at his fingertips, but probably has a better grasp of strategic reality than Putin did or does. China has major financial problems with a huge commercial real estate debt bubble and folks like Apple and others working to pull mass production from China to more stable countries. Problem for businesses dealing with China is the Central Committee will decide to make a hard left turn with no notice on any number of issues from Covid lockdowns to who and what can enter or leave the country to capital controls and on and on. Selling US bonds and increasing their western hard currency reserve gives them more flexibility as to how to solve economic issues.

All that said, a war over Taiwan would likely not end well for China in the long term assuming they get sanctioned similarly to what Russia is experiencing. While Russia can still sell its major export of fossil fuels at a discount to a few willing buyers, China can't find enough alternative buyers for its wide range and quantities of produced goods to sustain it's economy. Chinese won't like losing their jobs and getting called up in a major military draft any more than Russians did. The point that countries in dire straights are often tempted to take big gambles is the risk.

Irish_Dem

(58,840 posts)
4. 100% certain China is going to make itself sanction proof.
Wed Jan 25, 2023, 10:57 AM
Jan 2023

China learned a great deal by watching the west sanction Russia.

It is going to make some aggressive moves like Putin did.

China will also corner the market on various resources.
The west will be over a barrel.

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