China’s Threat to Dump Treasurys Has No Bite

China’s possibility of dumping its massive holdings of U.S. debt has long been considered a “nuclear option” to force the United States to capitulate in the ongoing trade war. Despite the threat, this has an almost zero change of happening.

A man walks past the National Debt Clock on 43rd Street in midtown Manhattan, New York City on Feb. 15, 2019. Timothy A. Clary/AFP/Getty Images

News Analysis

A May 13 tweet by the editor of a state-run Chinese newspaper set off speculation that China may stop buying U.S. debt and begin selling Treasurys.