Part 6/10:
Yu expressed concerns regarding speculative U.S. strategies potentially aiming to reduce debt burdens, including hypothetical plans that could resemble defaults on foreign-held debts. He emphasized that China needs to prepare for potential losses, given the declining trend of its Treasury securities holdings.
As a response, experts have begun to examine the implications of China possibly diversifying its asset purchases away from the U.S. While the prospect of significant changes in these asset holdings could have disruptive consequences on global markets, it remains challenging for China to shift away from U.S. assets completely.