Coronavirus: China could cut US debt holdings in response to White House Covid-19 compensation threats, analysts say
- US news reports suggest White House officials have already considered the idea of cancelling all or part of the US$1.1 trillion debt owed to China
- In response to the debate over the highly unlikely ‘nuclear option’, China could cut its holdings as the US ramps up borrowing to pay coronavirus-related costs
…the mere fact that the idea has been discussed could well prompt Beijing to seek to insulate itself from the risk by reducing its US government debt holdings.
That, in turn, could spell trouble for the US government bond market…
Read the full report at: https://www.scmp.com/economy/china-economy/article/3083100/coronavirus-china-could-cut-us-debt-holdings-response-white
