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China mulls easing US treasury purchases, move could hit Washington hard

China is America's biggest external creditor with $1.17 trn in Treasuries as of Jan, or 19% of all foreign holdings of US govt securities

Donald Trump
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Donald Trump (Photo: AP/PTI)

Andrew Mayeda | Bloomberg
China’s ambassador to the US wouldn’t rule out the possibility of the Asian nation scaling back purchases of Treasuries in response to tariffs imposed by President Donald Trump.

“We are looking at all options,” Ambassador Cui Tiankai told Bloomberg Television, when asked whether China would consider reduced purchases of US Treasuries. “That’s why we believe any unilateral and protectionist move would hurt everybody, including the United States itself. It would certainly hurt the daily life of American middle-class people, and the American companies, and the financial markets.”

China is America’s biggest foreign creditor. It held $1.17 trillion in Treasuries as