Beijing is the largest holder and buyer of
the US Treasury securities despite the two countries being engaged in a spiral
of mutual trade restrictions.
In one year, China has increased its holdings of the US debt from $117
billion to $118 trillion despite the harsh rhetoric from the White House. One
of US' closest allies Japan, on the contrary, has sold $56 billion in
treasuries over the period to $1.059 trillion. RT talked to an analyst who
explained why it is not the other way round.
“The US enemy in the ‘trade war’ not only does not sell American
securities, but also buys them at a record pace. For example, in February,
China acquired more treasures than any other country,” Mikhail Mashchenko,
an analyst at social network for investors eToro told RT.
At the same time, Japan has been selling the US debt since 2015, and
in February they sold more than any other country; their holdings are now at
the level of 2012, the analyst added.
“Quite possibly, in the case of Japan, we are dealing with a comPbination
of several reasons: difficulties with the economy, too expensive funding for
purchases of US securities because of the difference in risk-free rates and the
search for more profitable instruments. The country actively buys bonds of
Germany and France, whose economies have all the chances to show greater growth
than the US,” Mashchenko added.
Source: rt