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Why China Hasn’t Dumped American Bonds

It would not be in China’s best interests to sell its holdings in U.S. bonds.
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Why China Hasn’t Dumped American Bonds
A man stands next to a monitor displaying the shares index at a securities company in Chengdu, in China's southwestern province of Sichuan, 29 August 2007. Liu Jin/AFP/Getty Images
Frank Xie
Updated:

While communist China’s growing hostility toward the free world (as represented by the United States) is becoming more and more difficult to conceal, the trade and financial ties between the two countries are nevertheless stronger than ever.

Some wonder why China, as resentful as it is toward the U.S., has spent so much on purchasing U.S. treasury bonds.

Frank Xie
Frank Xie
Author
Dr. Frank Tian Xie was originally from P.R. China and is now the John M. Olin Palmetto Chair Professor in Business and Professor of Marketing in the School of Business Administration at the University of South Carolina Aiken. Prior to that, Dr. Xie was on the faculty of business at Drexel University in Philadelphia. Dr. Xie is an expert of marketing strategy, international marketing, and Chinese business and economy. He has been interviewed by/appeared on many global media outlets such as The New York Times, CNN Business, The Epochtimes, Radio Australia, Tokyo Shimbun, SOH Radio, Voice of America, Radio Free Asia, and NTDTV.
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