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China Dumps $8.2 Billion in US Treasuries in Bold BRICS Counter-Attack
China has escalated its BRICS-led economic challenge to the United States by offloading $8.2 billion in U.S. Treasury bonds in April 2025. The aggressive move follows new U.S. tariffs imposed by President Trump in early April, signaling a major economic realignment by the world’s second-largest economy.
China Unwinds Dollar Holdings in Strategic Shift
According to the U.S. Treasury Department, China’s sell-off is part of a larger trend away from U.S. dollar-denominated assets, a key plank in BRICS’ de-dollarization strategy.
In April 2025 alone, China sold $8.2 billion in U.S. Treasuries, accelerating its broader push to cut financial ties with the U.S. and accumulate gold and other non-dollar assets in its central bank reserves.
Beijing’s Treasury holdings, once at $1.35 trillion in FY 2012–13, have plummeted to $757 billion as of April 2025 — a 44% decline over 13 years and a clear signal of long-term decoupling.
Diversifying Away from the Dollar
China is not just reducing exposure to U.S. debt — it’s also diversifying its reserves into gold and other local currencies, aiming to reduce dependence on the U.S. dollar and strengthen the BRICS bloc’s financial autonomy.
“China’s April reduction in US Treasury holdings is mainly due to the need for diversified foreign exchange reserve allocation,”
said Xi Junyang, professor at Shanghai University, to the Global Times.
He added that this trend may continue, noting China has been aggressively selling off Treasuries since 2022.
Implications for U.S. Deficit Funding
China remains the third-largest holder of U.S. Treasury debt, behind only Japan and the United Kingdom. If BRICS nations or other developing economies follow China’s lead, the United States could face serious difficulties funding its growing deficit.
This latest financial move is widely seen as a BRICS countermeasure to Trump’s trade tariffs and broader economic confrontation with the West.
A Steep Strategic Realignment
China’s evolving Treasury strategy signals more than portfolio diversification — it reflects a geopolitical shift designed to:
- Undermine the U.S. dollar’s global supremacy,
- Strengthen BRICS internal economic resilience, and
- Accelerate a multipolar global financial system that challenges traditional Western institutions.
With the dollar’s role as the global reserve currency increasingly under scrutiny, China’s decisive actions may mark a tipping point in the ongoing East-West economic realignment.
@ Newshounds News™
Source: Watcher.Guru
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