China Should Use Role as Biggest U.S Creditor, Researcher Writes

Reducing holdings of Treasuries is China’s most-effective tool for dealing with the U.S., Zhang Monan, a researcher with the State Information Center, wrote in a commentary published in the Securities Times newspaper today.

China should ponder how to use its role as the U.S.’s biggest creditor when yuan appreciation is expected to cause the value of its foreign exchange reserves to shrink, Zhang wrote. This role should be used to counter outside pressure, Zhang wrote.