In early April, the United States and China, a commercial war, characterized by increased increases in reciprocal rates. The US president first imposed a 34% increase in customs tariffs charged by Chinese products entering the US. UU., In addition to the 10% rate rate in all imports already in force. In a matter of days, this rate increased to 145%. Beijing has responded by raising its tariffs on US products at 125%.
In this confrontation, China has several significant economic levers at your disposal: its control over its currency, Yuan, the domination of the rare earth market and the property of the United States Treasury bonds. However, you cannot use them without risking to weigh your own economy or disturb it are other partners. In addition, China still depends largely on the US market to sell its products.
Here are five key data points to help understand the complex economic interdependencies between China and the United States.
China has a significant part of the United States national debt
The United States government finances its expense by issuing treasury bonds, which are bought by investors attracted by their renowned yields and stability. This financial instrument feeds the US national debt. UU., Which now has more than $ 36 billion.
China, who, in 2024, Hero is an average of $ 772.5 billion in Treasury bonds, is the second largest head of the US foreign debt. UU., Only Beind Japan. This represents approximately 2% of the public debt of the United States. The purchase of thesis values has allowed China to reinvest the yields in the sectors that strengthen commercial surpluses, all while avoiding the appreciation of the value of the Yuan, which would damage the competitiveness of its exports.
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