China in the near future can get rid of US government bonds, reducing their investments in this asset to historic lows, the newspaper South China Morning Post.
According to journalists of the edition, this step will be a response to the criticism which Washington’s accusations against Beijing in hiding the true extent of the outbreak of the coronavirus in the end of 2019. The result will be dealt a powerful blow to the dollar as the world reserve currency. In the short term, the PRC authorities are considering to replace treasuries in their reserves in gold.
currently, China along with Japan remains the largest holder of US government bonds. According to experts, the total volume of Chinese investments in U.S. securities is $ 1.1 trillion.
