China sold another $53 billion in U.S. Treasury bonds in May, reducing its holdings to below $700 billion — the lowest level since 2009. Beijing has now cut its U.S. debt exposure by 43% in just two years.
Japan, Saudi Arabia, and several Gulf sovereign funds are following the same path. The dollar fell against the yuan, and gold hit five-year highs as global investors look for alternatives to dollar-denominated assets.
Analysis by Chem. Eng. Moisés R. Hernández, Director of MRH Analysis and World Academic Podcast. China isn't diversifying cautiously, it's punishing Washington. Every bond sold is a vote of no confidence. Dedollarization is slow, but unstoppable.
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