Tensions between China and The United States of America expected to rise further.

The Chinese Communist Regime is planning to systematically reduce the US Treasury Bond holdings by 20%. As of today, The Chinese government holds about 1 Trillion US dollars worth of bonds.

As per their statement made on one of its official mouthpieces, ‘The Global Times’ China might consider selling off the $200 Billion dollar worth of US Treasury holdings. The reason it site is that the ballooning US federal deficit will increase the risk percentage and also due to US President Donald trump’s continuous attack on Chinese exports.

The US and China relationship has touched a new low in 2020. The tension between both might lead to an actual military conflict as per defense experts. There are various factors affecting the Sino-American relations ranging from Trade, Corona Virus outbreak, financial market, technology theft among others. But now China is literally threatening the US economy with it’s Treasury Bond holdings.

Talking about the issue a lead professor Xi Juyang at the Shangai University for the department of finance said that the Chinese will be happy to sell off some US Treasury bond as a brief warning. But he said that China might be thinking about gradually selling all the bonds worth about $1 trillion USD. If the situation goes extreme.

China already in the process of decreasing it’s US Treasury holdings it held $1.074 Trillion in June which is less than the previous month of $1.083 Trillion.

Slowly but steadily Chinese are in the process to sell off the US Treasury holdings. And using them as a bargaining chip with the US government.

This move by China might trigger a global economy panic and crisis on a large scale. As per many western experts, this move by China further escalates the relation to a point of no return.

The plan is to undercut the US dollar patent system in the long run.