The United States doesn’t believe China’s $1.1 trillion in Treasury holdings matter in the ongoing trade war, Treasury Secretary Scott Bessent, says the debt pile gives China no power over U.S. policy.
This is happening as tensions rise and investors grow nervous about whether Beijing will weaponize its foreign exchange reserves to retaliate against the White House.
The concern started growing after the U.S. government, led by President Donald Trump, announced new tariffs earlier this month. As a result, traders sold off American government bonds, pushing the 10-year Treasury yield to 4.59% last week.
