Skip to content
Subscriber Only

China’s U.S. Debt Buying Seen Limited, Former Adviser Says

China may limit its purchases of U.S. Treasuries because the central bank has reduced its buying of dollars at home, according to a Chinese academic who has served as a government adviser.

The People’s Bank of China has “noticeably” reduced its purchases of dollars from local banks to allow commercial banks to trade among themselves, Ding Zhijie, dean of finance at Beijing’s University of International Business and Economics, said in a Nov. 23 interview. That may cap the nation’s foreign-exchange reserves and consequently its demand for U.S. government debt, he said.