Lena Petrova: China Orders Banks to Cut US Treasury Holdings as the Dollar’s Decline Ramps up

The global financial landscape is witnessing a significant yet nuanced development, as China has reportedly directed its banks to limit their exposure to US government bonds, also known as US treasuries. This move, conveyed informally to major Chinese banks, signals a cautious shift in China’s financial strategy amid growing global uncertainty about the reliability and risk profile of US debt. While officially framed as a risk management measure related to concentration risk and market volatility, the move is widely interpreted within the context of broader geopolitical and economic shifts, particularly the ongoing global trend of diversifying away from the US…