The Entangling Relationship With China

By Herb London

While trade sanctions against China are being discussed on Capital Hill, the Chinese government has begun a concerted campaign of economic threats against the United States in a game called “Who will blink first?”

Several leading Chinese Communist officials have warned that Beijing may use its $1.33 trillion foreign reserves as a political weapon to counter Congressional plans for trade sanctions. Some have called this China’s “nuclear option” since dumping U.S. bonds could trigger a dollar crash at a moment when the currency is already breaking down through historic support levels.

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