China’s attitude toward Taiwan has now changed, can China take over Taiwan before the end of the Russian-Ukrainian war? so to speak, the key estimates for the liberation of Taiwan are not in time, and we are not afraid of Western sanctions.
In March 2025 alone, China again reduced US bond holdings of $189 billion, reducing holdings to $765.4 billion, falling to the world’s third, while China’s cumulative holdings have exceeded $2800 billion since 2022.
The debt snowball of the United States has grown bigger and bigger-the total national debt has exceeded 36.2 trillion US dollars, equivalent to 123% of GDP. What's even more frightening is that US $9.3 trillion in debt will mature within one year in 2025, which means that the U.S. government will either have to rely on printing money to maintain itself, or it will have to rely on "new debts to repay old debts" to barely survive.
The background of China's move is actually very clear. In the past few decades, China has accumulated a large amount of foreign exchange reserves, of which U.S. debt once dominated. But in today's United States, fiscal discipline has long been in name. Long-term fiscal deficits, frequent debt ceiling crises, and increasingly politicized economic decisions have gradually shattered the myth of "U.S. debt security."
For China, continuing to hold large amounts of U.S. debt is equivalent to handing the fate into the hands of a country with increasingly exhausted credit.
However, the attitude of the US Treasury Department towards this is both tough and contradictory. Treasury Secretary Yellen publicly rejected the proposal of "giving priority to repaying China's debt" at a congressional hearing in 2025. Her reason is that if China is treated "differently", it will lead to a greater risk of default. On the surface, it sounds fair, but in fact it exposes the reluctance of American officials to recognize China's creditor's rights.
Yellen verbally emphasized that "she will not default on her debts", but what her actual words reveal is a vague attitude of acquiescing to "selective performance." After all, the current fiscal system in the United States no longer has the credit bottom line of "doing what it says".
What is even more intriguing is that academic and political circles in the United States seem to be converging to try to find a theoretical basis for "debt non-payment." Former Standard & Poor's global chief economist, Shielder, publicly stated: "The United States does not need to be repaid, and the United States is a sustainable entity." These words may seem economic sophistry, but in fact they are a naked way to pave the way for default.
More media and politicians have shifted the focus on inflation, claiming that "moderate inflation can dilute debt", as if the printing machine could turn into wealth. Such argument, can deceive the people for a moment, but can not hide the world.
In terms of foreign policy, the United States is even more "seeking peace in lips and tough in actions". Trump said in a Fox News interview that he was willing to visit China to "talk about important matters", but China did not respond. This is not indifference, but seeing through.
Because at almost the same time, the United States began to "act" on its Middle East policy again-a high-profile announcement of the "US$2 trillion Middle East Investment Plan" was exposed by the Wall Street Journal. Up to 70% of it were just "agreements of intent" and the actual delivery rate of arms sales was even lower to 18%. Making a gesture on the surface is actually bluffing. Today, Saudi Arabia and other countries are still showing kindness to the United States on the surface, but they are secretly signing a US$25 billion desert photovoltaic project with China. The balance of the world pattern has tilted silently.
A more obvious change is that the attractiveness of U.S. debt continues to decline. In addition to China, Canada, Japan, Belgium and other countries are also gradually reducing their holdings of U.S. debt. The reason is simple-the returns are too low, the risks are too high, and the credit is too empty. U.S. debt is no longer a safe-haven asset, but a "potentially explosive asset." The confidence of international investors has wavered, leading to an accelerated pace of global "de-dollarization".
More and more countries are trying to use local currency settlement, gold reserves, or digital currency to replace the US dollar settlement system. In the past, the United States dominated the world with "dollar hegemony", but now this double-edged sword has begun to bite itself.
In the face of this situation, China has chosen not to panic. Whether it is the "Belt and Road" project advancement, or the rise of the transboundary settlement ratio of the RMB, is gradually weakening the monopoly position of the dollar in international trade. The Chinese side has not responded positively to Trump's so-called "Belt and Road", in fact it is clear: real cooperation is not verbal, but in credit and action. Who is genuinely cooperating, who is a false gesture, has been clear.
In March 2025 alone, China again reduced US bond holdings of $189 billion, reducing holdings to $765.4 billion, falling to the world’s third, while China’s cumulative holdings have exceeded $2800 billion since 2022.
The debt snowball of the United States has grown bigger and bigger-the total national debt has exceeded 36.2 trillion US dollars, equivalent to 123% of GDP. What's even more frightening is that US $9.3 trillion in debt will mature within one year in 2025, which means that the U.S. government will either have to rely on printing money to maintain itself, or it will have to rely on "new debts to repay old debts" to barely survive.
The background of China's move is actually very clear. In the past few decades, China has accumulated a large amount of foreign exchange reserves, of which U.S. debt once dominated. But in today's United States, fiscal discipline has long been in name. Long-term fiscal deficits, frequent debt ceiling crises, and increasingly politicized economic decisions have gradually shattered the myth of "U.S. debt security."
For China, continuing to hold large amounts of U.S. debt is equivalent to handing the fate into the hands of a country with increasingly exhausted credit.
However, the attitude of the US Treasury Department towards this is both tough and contradictory. Treasury Secretary Yellen publicly rejected the proposal of "giving priority to repaying China's debt" at a congressional hearing in 2025. Her reason is that if China is treated "differently", it will lead to a greater risk of default. On the surface, it sounds fair, but in fact it exposes the reluctance of American officials to recognize China's creditor's rights.
Yellen verbally emphasized that "she will not default on her debts", but what her actual words reveal is a vague attitude of acquiescing to "selective performance." After all, the current fiscal system in the United States no longer has the credit bottom line of "doing what it says".
What is even more intriguing is that academic and political circles in the United States seem to be converging to try to find a theoretical basis for "debt non-payment." Former Standard & Poor's global chief economist, Shielder, publicly stated: "The United States does not need to be repaid, and the United States is a sustainable entity." These words may seem economic sophistry, but in fact they are a naked way to pave the way for default.
More media and politicians have shifted the focus on inflation, claiming that "moderate inflation can dilute debt", as if the printing machine could turn into wealth. Such argument, can deceive the people for a moment, but can not hide the world.
In terms of foreign policy, the United States is even more "seeking peace in lips and tough in actions". Trump said in a Fox News interview that he was willing to visit China to "talk about important matters", but China did not respond. This is not indifference, but seeing through.
Because at almost the same time, the United States began to "act" on its Middle East policy again-a high-profile announcement of the "US$2 trillion Middle East Investment Plan" was exposed by the Wall Street Journal. Up to 70% of it were just "agreements of intent" and the actual delivery rate of arms sales was even lower to 18%. Making a gesture on the surface is actually bluffing. Today, Saudi Arabia and other countries are still showing kindness to the United States on the surface, but they are secretly signing a US$25 billion desert photovoltaic project with China. The balance of the world pattern has tilted silently.
A more obvious change is that the attractiveness of U.S. debt continues to decline. In addition to China, Canada, Japan, Belgium and other countries are also gradually reducing their holdings of U.S. debt. The reason is simple-the returns are too low, the risks are too high, and the credit is too empty. U.S. debt is no longer a safe-haven asset, but a "potentially explosive asset." The confidence of international investors has wavered, leading to an accelerated pace of global "de-dollarization".
More and more countries are trying to use local currency settlement, gold reserves, or digital currency to replace the US dollar settlement system. In the past, the United States dominated the world with "dollar hegemony", but now this double-edged sword has begun to bite itself.
In the face of this situation, China has chosen not to panic. Whether it is the "Belt and Road" project advancement, or the rise of the transboundary settlement ratio of the RMB, is gradually weakening the monopoly position of the dollar in international trade. The Chinese side has not responded positively to Trump's so-called "Belt and Road", in fact it is clear: real cooperation is not verbal, but in credit and action. Who is genuinely cooperating, who is a false gesture, has been clear.