Here are a few observations about China:
- China has reduced its holdings of U.S. Treasury bonds to $800 billion, a level not seen since the 2008-2009 financial crisis. Considering currency devaluation, this amount is relatively minor. It’s important to note that China has never been a major enthusiast of U.S. government securities, unlike Japan, for example.
2. The Chinese economy is evidently slowing down, and its growth no longer appears as remarkable.
3. The Chinese stock market has been in a state of decline for the third consecutive year.
4. The real estate market in China is facing a downturn for the third year in a row, and the bankruptcy of developers continues.
My point is not to cast a negative light on China. I have great respect for the country and its people, who have made a tremendous leap in development over the past 50 years!
It is evident that China and the USA are preparing for a significant conflict. The U.S. and its funds are withdrawing substantial investments from Chinese companies and the stock market, while China openly repays U.S. debts.