- cross-posted to:
- worldnews@lemmygrad.ml
- worldnews@lemmy.ml
- cross-posted to:
- worldnews@lemmygrad.ml
- worldnews@lemmy.ml
China sold a record $53.3 billion of US Treasury and agency bonds in the first quarter of 2024, likely due to escalating trade tensions and a desire to diversify its assets. This move is raising concerns as China is a major holder of US debt and its actions could impact the US economy. Additionally, China has been increasing its gold reserves, potentially as a way to mitigate sanctions risk.
https://archive.ph/6f6XN
It's a desperation move for Biden's re-election. He is appeasing the US auto industry because he needs UAW support now more than ever thanks to utterly wrecking his chances of winning Michigan. It also endears him to Sinophobes who blame every American ill on China. He must think the effects of the inevitable trade war won't be felt until after election day because when the price of everything in Walmart doubles it will lose all support.
If this is the case it's even more out of touch than I thought. The threat from China in the automobile market is their EVs, which poses a big threat to Tesla. Tesla isn't unionized. If we were to have a company like BYD start selling in the USA, they'd do like all the other manufacturers and open up a subsidiary in the USA and get a plant going here. I think the Chinese manufacturers are smart enough to work with a big union like the UAW but that's conjecture. That kind of cooperation doesn't pose a threat to the union workers as it would strengthen them but it does pose an existential threat to our ruling class. The last thing they want is a giant Chinese manufacturer coming here and working with American unions.