Balancing Act

<正>U.S.debt wrangling puts mutually dependent relationship with China at risk Despite mounting concerns over default risks of U.S.Treasury bonds,China increased its holdings of these securities for the fourth consecutive month.The latest data from the U.S.Treasury Department,released     

Keeping U.S. Bonds in Hand

U.S. bonds still comprise a major share of Chinese foreign reserves People are becoming increasingly uneasy about reports saying China is reducing its holdings of U.S.bonds. Currently, China is the sec-ond largest holder of U.S.     

MARKET WATCH

TO THE POINT: The U.S. financial crisis swept across the world and shook the very foundations of the global financial system. Mainland stock markets plunged on the news of the U.S. financial catastrophe and dived to new lows. Some Chinese financial institutions disclosed that they held bonds issued by the U.S. investment bank Lehman Brothers, which declared bankruptcy. China accumulated more U.S. Treasury bonds in July after observing a U.S. dollar rebound. The domestic property market underwent a correction period after two years of housing price surges. Despite the global financial agony, China still remained attractive to foreign companies. The American conglomerate General Electric said it planned to set up five new regional headquarters in the country.     

MARKET WATCH

U.S.Treasuries Shed China trimmed its holdings of U.S.Treasury securities in June to ＄843.7 billion,according to the U.S.Department of the Treasury.     

发展互利共赢的中美经济合作关系

The U.S.-China Strategic and Economic Dialogue in Beijing this week will have a major bearing on the sustainable and healthy development of our economic relationship. Since the United States and China established diplomatic relations, bilateral trade volume has grown nearly 120-fold. U.S. direct investment in China has topped $63.1 billion, and China's direct investment in America has also grown rapidly, in tandem with indirect investment in Treasury bonds and other American assets.     

The Downside Of Openness

The opening of China's financial markets may not be the key to resolving the U.S. trade deficit As an investment banker, Henry Paulson was known for his 70-odd visits to China. Thishigh frequency has been sustained since he took over the U.S. Treasury in June last year. On March 7-8, he visited China for the third time as U.S. Treasury Secretary, main-     

A Trip of Goodwill

Geithner calms fears about U.S. treasury bonds on his first visit to China since taking office TI wo days before America's biggest and iconic carmaker General Motors announced its bankruptcy on June 1, U.S. Treasury Secretary Timothy Geithner left for meetings     

Ditching U.S.Securities?

Japan overtook China as the largest foreign holder of U.S.Treasury securities at the end of 2009 after China sold $34.2 billion in American securities last December.China had previously surpassed Japan as the largest holder in September 2008.Since then,China has increased and reduced its holding from time to time.The latest amount,however,accounted for 4 percent of all Chinese holdings and was the biggest single month reduction in years.     

A SAFE Choice

<正>The State Administration of Foreign Exchange is diversifying its huge money pool China is overcoming its past addiction to U.S. Treasury bonds and is work- ing on a more diversified portfolio, investing in bonds from other nations or in overseas properties.     

Li Keqiang Meets U.S.Treasury Secretary

Chinese Premier Li Keqiang met with Jacob Lew,special representative of the U.S.President and the U.S.Treasury Secretary,in Beijing on February 29,2016.Li said that China became the largest trading partner of the U.S.last year.According to Li,China was ready for closer     

Unfounded Accusation

The U.S. Department of the Treasury officially designated China a"currency manipulator" on August 5. The designation followed the Chinese yuan(renminbi),both onshore and offshore,falling beyond 7 against the U.S. dollar the same day, making Chinese exports cheaper in the U.S.     

Rationalizing Relations

U.S. Treasury Secretary Henry Paulson demonstrates Washington’s more pragmatic approach to ChinaEven before Henry Paulson kicked off his first China tour as guardian of the U.S. national coffers, hopes were high in China that the new treasury secretary’…     

WEEKLY WATCH

LANDMARK TALKSChinese Vice Premier Wu Yi and U.S. Treasury Secretary Henry Paulson greet each other before they co-chaired the first strategic economic dialogue between China and the United States on December 14. The two-day meeting, focusing on “China’…     

The Ties That Bind

China and the United States prepare for their first Strategic and Economic Dialogue U.S. Treasury Secretary Timothy Geithner's China trip from May 31 to June 2 sent a clear message that the two countries plan to establish stronger ties not only in the economic field, but also in other areas where they have com-     

Active Rebalancing

正China has reduced the U.S. government bonds it holds, thereby becoming the second largest holder of U.S. treasuries,behind Japan.At the end of October 2016, China’s U.S.government investments had fallen $41.3bil ion to $1.12 trillion, while Japan’s portfolio had decreased by $4.5 billion to $1.13 tril-     

Lost in Protectionism

On March 22, U.S. President Donald Trump signed a memorandum targeting China's so-called "economic aggression," threatening to impose tariffs on up to $60 billion of imports from China based on an investigation into alleged Chinese intellectual property and technology transfer practices under Section 301 of the U.S. Trade Act of 1974. He also directed the U.S. Treasury Department to propose restrictions on Chinese investment in the United States.     

MARKET WATCH

China continues to shed its holdings of U.S. Treasury securities as the country aims to diversify its foreign exchange reserves. More U.S. companies are looking to solidify their footprint in China. Chinese exporters stage a comeback, as the ongoing Canton Fair witnesses increased deals. The e-commerce sector slows down due to seasonal factors. The Internet portal Sohu.com cashes in on stronger online gaming, advertising and search businesses.     

MARKET WATCH

Bank lending turns lackluster in China as the country gears up to tame lingering inflation. Despite a weakened U.S. economy, China continues increasing its holdings of U.S. Treasury securities. State-owned enterprises are losing some momentum, as a result of cost inflation. Telecom equipment maker Huawei fares well, drawing strength from booming consumer device businesses. Chinese companies are expected to accelerate their pace of venturing overseas.     

MARKET WATCH

China drains excess liquidity out of the market by further hiking the reserve requirement ratio.China offloads its holdings of U.S.Treasury securities for the fifth consecutive month in a bid to diversify its foreign exchange reserves.Home prices remain on the rise in most Chinese cities,though the government has tried to cool the property fever.China’s thermal power generators incur painful losses as coal prices soar.E-reader manufacturer Hanvon swims in red ink as sales plunge,possibly due to the iPad’s popularity.     

MARKET WATCH

<正>TO THE POINT: China has initiated the trial program of Renminbi Qualified Foreign Institutional Investors, making a solid step to boost wider use of the Chinese currency. Home price declines spread to more Chinese cities as the tightening measures gained traction. China trimmed its holdings of U.S. Treasury securities by $14.2 billion in October. In a report by Deloitte Touche Tohmatsu Ltd., the accounting firm expects China to remain a manufacturing powerhouse over the next few years, though pressures are already mounting.