After cordial Xi-Trump summit, could China’s US dollar pivot cause tremors?
Beijing has gradually been cutting its holdings of US Treasuries while pushing to expand the yuan’s global use and developing alternative financial architecture. The issue did not feature in the official communique of last month’s Xi-Trump summit in Washington, where tariffs, agricultural quotas and critical minerals were discussed. Charles Chang, a finance professor at Fudan University, said China’s holdings of US debt were likely raised during the talks but were unlikely to result in a formal agreement similar to those covering trade.
Why it matters: It bears on the geoeconomics theme, because a gradual reduction of dollar exposure alongside expanded yuan use touches on reserve-currency arrangements and sovereign debt management that Washington is likely to scrutinise.