China can get rid of US government bonds and thereby derail the dollar, warns the newspaper South China Morning Post. According to journalists of the edition, this step will be the respond to from Washington charged with distribution of COVID-19.
currently, the US debt to China is about $ 1.1 trillion. The American media is increasingly discussing the rumors that the White house may abandon its obligations to China, in fact, defaulted on the securities.
Analysts doubt that the Americans would go to such extreme measures. However, the fact that such debate may force Beijing to protect themselves from the risks and dramatically reduce the volume of investments in us bonds.
And the celestial can choose for such a maneuver maximally unsuitable for Washington now than undermine the entire securities market of the United States. The result will be dealt a powerful blow to the dollar as the world reserve currency.
“China could trigger a collapse of the dollar and financial markets by selling US debt” – the newspaper writes. Journalists also admit that Beijing can simply stop buying new bond issues.
Recall that earlier the US President Donald trump called the cause of the outbreak of a pandemic of a new type of coronavirus incompetence of China. In addition, the Americans were often heard accusations that COVID-19 was artificially created in a Chinese laboratory in Wuhan.
