, Columnist
Why Wouldn’t China Weaponize Its $760 Billion Treasury Holdings?
Trump’s tariff U-turn exposed his core weakness. Beijing can easily dent America’s safe-haven status.
Beijing could take advantage of Trump’s Achilles’ heel.
Photographer: Michael Nagle/BloombergChina is done retaliating against US President Donald Trump’s exorbitant tariffs, calling the administration’s actions a “joke” that it no longer considers worthy of matching. The question now is whether President Xi Jinping will find a more potent weapon to strike back at his opponent. Beijing, on Friday, reiterated its vow to “fight to the end.”
One dangerous card that China’s got is its $760 billion holdings in Treasury securities. The country is the US’s second-largest foreign creditor after Japan.