China's quiet shift away from Treasuries signals a deliberate global pivot as countries scramble to de-risk from an increasingly unreliable America. Trump's assault on Fed independence and erratic foreign policy are accelerating dollar diversification worldwide, with gold reserves surging and allies forging new trade partnerships that exclude Washington.
China dumping Treasuries would backfire spectacularly, crushing the value of its own massive holdings while strengthening the yuan at the worst possible time for Beijing's struggling economy. Any sell-off would be met with Fed intervention to stabilize markets, and an orderly dollar decline would actually boost American manufacturing and speed recovery.
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