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China's U.S. Debt Holdings May Be an Ace Card in Trade Dispute

China Announces 2010 GDP Figures

Photographer: Nelson Ching/Bloomberg

The possibility that China may taper its purchases of U.S. Treasuries sends a message that America could pay a price for imposing new trade barriers.

There’s been more tough talk than action from President Donald Trump’s year-old administration about cracking down on China’s unfair trading practices to reduce the deficit. But Trump is facing decision time as deadlines approach over whether to slap tariffs on imports from steel and aluminum to solar panels -- which would be clearly aimed at China.