China’s Possible ‘Nuclear Option’ of Dumping US Treasuries May Be Long Shot

With China’s backs against the wall and President Trump not close to relenting, some trade experts suggested that Beijing may finally be pushed to a nuclear option—selling its U.S. treasury holdings.

Employees work at a bank in Shanghai on Aug. 8, 2018. Johannes Eisele / AFP/Getty Images

News Analysis

President Donald Trump’s ongoing trade dispute with China is wreaking havoc on the Chinese economy, sending its currency and stock markets lower even as concerns deepen about forecasts of slowing growth.