TOKYO (Kyodo) — With Sino-U.S. tensions escalating over several security and economic issues, fears are mounting in the financial markets that China may massively sell U.S. government debt it holds as a weapon to choke the world’s biggest economy.
If Beijing, which owns more than $1 trillion worth of U.S. Treasury bonds, really takes such action, that would push down debt prices and drive up interest rates in the United States, stifling investment and consumer spending at home.
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