China’s investments in US Treasury bonds are continuing “every day” and should not be politicised, according to the head of China’s foreign exchange administration, which manages the country’s $2,400bn in foreign exchange reserves.
Chinese investments in US Treasuries were “market investment behaviour”, said Yi Gang, director of the State Administration of Foreign Exchange, on Tuesday. “We do not want to politicise [these investments] ... We are a responsible investor and in the process of these investments we can definitely achieve a mutually beneficial result.”
Senior Beijing officials have voiced fears that US economic policies would see the value of the dollar suffer and since China is the biggest foreign holder of US Treasury bonds, there is speculation that the country is reducing its holdings of dollar assets.