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China rattles financial sabre

Beijing may be mulling cuts in vast US bond holdings in reply to Trump trade threats

| China
America has built and runs a robust economy, thanks to huge Treasury bills held by Asian countries, foremost among them being Beijing's $1.2 trillion holdings.   © Reuters

As Donald Trump seeks leverage against China, the tycoon-turned-president appears to have forgotten the basics of his former day job. Beijing may be about to remind him about borrower/lender mechanics.

The U.S. built a huge, innovative and enviably wealthy economy, but Asia holds the mortgage. Beijing owns $1.2 trillion of U.S. Treasuries, and Tokyo $1.1 trillion. Hong Kong has $192 billion, Taiwan $182 billion, India $141 billion, Singapore $130 billion.

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