[beautifulfreak]

China is actually dumping US treasuries, as of the start of 2023. https://www.youtube.com/watch?v=SSbzefh0VEM They've found new ways to trade in dollars without using US or European banks, so their assets can't be frozen (such as by the use of Tether) so US banks aren't getting paid. As for cross-border trade, 53% of it is now conducted in RMB, with USD falling to 41% (and continuing to decline). US economic policy towards China is backfiring on many fronts, the worst being that Chinese companies have adapted and now produce what they used to import, even advanced technologies. If the export controls were lifted, Chinese companies would not resume business with US companies, because they don't need them anymore.

https://www.zerohedge.com/geopolitical/start-de-dollarizatio...

[User23]

The question is dumping for what? If they’re selling treasuries to buy reserves or US equities then they’re still long USD. To actually unwind their dollar position they need a counterparty who wants to buy dollars with a non dollar denominated asset. No doubt they can do that to the tune of a few billions, but who’s the counterparty looking to buy hundreds of billions of dollars that way? The only obvious (to me anyhow) candidate is Japan, but they would both have to overcome some historical baggage to pull off that play. And even then it’s not just a matter of selling. The game changes when you’re big enough to be a marginal price setter.

[chii]

> To actually unwind their dollar position they need a counterparty who wants to buy dollars with a non dollar denominated asset.

why not gold? surely, you can see that china is continuously buying more and more gold reserves.

At some point, china would also be able to convince the global south to start trading in the chinese yuan.