If rerouting Chinese products through third countries were really that easy, it would’ve been done already. Why would any country risk getting caught in the current geopolitical climate? Just look at the recent attempt to dump Chinese solar panels via Malaysia and Thailand — we both know how that ended.
Now, about those Treasury bills… who exactly is going to buy them? Even if China wants to offload them, who has the kind of liquidity to absorb that volume? Sure, they could sell at a steep discount and attract a few bargain hunters, but let’s be honest — those bills are like a bone stuck in China’s throat. They can’t swallow them, and they can’t spit them out.
And let’s not forget — the U.S. prints the dollar and controls the mint. As long as it remains the dominant consumer, accounting for 34% of global consumption, and the dollar retains its status as the world’s reserve currency, the calls will always be made in Washington, not Beijing.
All this Chinese bluster is just posturing for domestic consumption — a bit of chest-thumping before Xi eventually raises the white flag.
