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Thread: Selling dollars to counter US trade protectionism???

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[quote=BBQQ,243089]In recent years, the trade disputes between China and US have occurred frequently, for example, such as IPR issue, the revaluation of RMB and the food safety. One of the reasons is that China has earned a large amount of trade surplus from its partner. This made US very uncomfortable. Thus, US has tried many ways to change the situation and protect its domestic indestries and corporations, for example, requesting China's Yuan to revaluate. Faced with these, what China will do?

The report from Telegraph said that China may use its abundant foreign exchange reserve to counter the pressure from US. The volume of China's foreign exchange has exceeded 1.3 trillion yuan. Meanwhile, China has a vast holding of US dollars. To cope with US trade sanctions, China may liquidate the holding of US treasuries. Such a move may cause the dollar crash. Bush said that China will have a great loss if she really selll its dollar holdings.

What do you think of it? China will liquidate her vast holding of US treasuries to counter the pressure from US?[/quote]

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