As tensions escalate between the United States and China over, trade, Hong Kong, Taiwan and even TikTok officials have expressed concern that Beijing could use its stockpile of US Treasury bonds to destabilize the American economy and pressure Washington into backing down.
As of the end of November, China owed US$1.063 trillion of the total outstanding US government debt issued by the Department of Treasury.
Since the start of the trade war in 2018, there has been concern over China possibly weaponising its American debt holding as a way to retaliate against trade tariffs.
The Chinese government does not disclose how much US debt it owns, but the American Treasury publishes monthly data on all foreign holders of US debt, and China historically being the top foreign holders of debt, along with Japan.
America's debt is the top concern among respondents with 89% saying the problem was "very serious." There is a lot of fear, confusion, and misapprehension about the debt and what would happen if China were to call it in, only time will tell.
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