Economy
China Is No Longer Top Creditor To US
China is no longer the biggest foreign creditor to the US government, according to the latest data released by the US Treasury Department, a change that could weaken Beijing’s position in negotiating with the administration of Donald Trump.
China has reduced its holdings of US Treasury bonds in recent months to raise funds to mitigate capital flight and defend its currency, and is expected to keep doing so now that a rate increase by the US Federal Reserve has started a new round of yuan depreciation.
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