China is accelerating its divestment from US assets, with capital outflows surging to their highest level since 2016 in April. Chinese banks sold $36.7 billion worth of foreign exchange to clients last month, the most since 2016. Additionally, Beijing has offloaded $53.3 billion in US securities, according to Treasury Department data. This move is part of a broader strategy to reduce reliance on the US dollar in international trade, driven by concerns over unsustainable debt, economic sanctions, and the potential for a US banking crisis. The shift has put the US dollar under a geopolitical spotlight, as China's actions are seen as part of its effort to de-risk trade ties and deepen connections with emerging markets, reducing dependency on the US and EU. A Fed governor highlighted the de-dollarization debate, noting the changing role of the US economy in global finance.
China ramps up de-dollarization efforts by dumping a record amount of US bonds https://t.co/oRDXe3kvEn
China's US bond shifts put dollar under geopolitical spotlight https://t.co/gTjrcIe5H3 https://t.co/VrL1ThS1ou
China’s U.S. bond shifts put greenback under geopolitical spotlight https://t.co/plIH9OUB8d
🇨🇳 - China may well be the world leader for de-risking trade ties • Chinese firms have been developing ties with emerging markets over past ten years • This reduces China's reliance on unfriendly markets (🇺🇸🇪🇺), shielding Beijing from geopolitical tensions https://t.co/CtcZ5Coj4d
China has been offloading US Treasury debt at a record pace. It is yet another sign of deepening ties with Russia, warns @philippilk 👇 https://t.co/FPR4Xew52y
China offloads record amount of dollar assets – data Beijing has sold $53.3 billion in US securities, according to Treasury Department data https://t.co/YXw2Zq4dtR https://t.co/zaKwsQ6nXs
Chinese Banks sold $36.7 billion worth of FX to its clients last month, the most since 2016 https://t.co/hLFI0YyAst
China is rapidly ditching the dollar in international trade - Besides the unsustainable debt, economic sanctions/warfare and theft of reserves, there are growing concerns about the pending US bank crisis https://t.co/K235lc1tHR
China is rapidly ditching the dollar in international trade - Besides the unsustainable debt, intensifying sanctions and theft of reserves, there are growing concerns about the pending US bank crisis https://t.co/Bvy4NypcYa
Fed governor highlights de-dollarization debate as concerns of global economy dropping the dollar grow. "The role of the U.S. economy in world finance is changing." https://t.co/SD7FxqVRjv
🇨🇳 #China’s Capital Outflow Surges to Highest Since 2016 in April – Bloomberg https://t.co/C39B1LEOWO https://t.co/SOlpaodDRY
BBG - China’s Capital Outflow Surges to Highest Since 2016 in April https://t.co/IEIOgCZNHI via @markets
China is divesting US assets at speed https://t.co/uFXuLzww00 https://t.co/kHHlXoauJs