Political Economy

China’s trillion dollar dilemma

As both the US and China reignite trade tensions amid the Covid-19 pandemic, Beijing is unlikely to aggressively dump its US treasuries because it would prove counterproductive.

Optimism surrounding a phase one trade truce between the US and China created a sanguine investment climate at the start of 2020. Including plans to rollback tariffs and address concerns regarding intellectual property rights, the deal assuaged anxieties that global supply chains would unravel and disrupt trade flows.

¬ Haymarket Media Limited. All rights reserved.

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