China threatens ‘nuclear option’ of dollar sales


August 7th, 2007

I bring this up because a large chunk of the debate tonight was devoted to China:

The Chinese government has begun a concerted campaign of economic threats against the United States, hinting that it may liquidate its vast holding of US treasuries if Washington imposes trade sanctions to force a yuan revaluation.

Two officials at leading Communist Party bodies have given interviews in recent days warning - for the first time - that Beijing may use its $1.33 trillion (£658bn) of foreign reserves as a political weapon to counter pressure from the US Congress. Shifts in Chinese policy are often announced through key think tanks and academies.



Posted in Issues, Election 2008 |

Leave a Reply

You must be logged in to post a comment.