After cordial Xi-Trump summit, could China’s US dollar pivot cause tremors?

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China has been reducing its holdings of US Treasuries while promoting wider international use of the yuan and alternative financial infrastructure. The article considers whether this gradual diversification could unsettle markets after Xi Jinping and Donald Trump discussed tariffs, agricultural quotas, and critical minerals.

As President Xi Jinping and US President Donald Trump talked tariffs, agricultural quotas and critical minerals at last month’s closely watched summit in Washington, an “elephant in the room” loomed over the discussion: China’s efforts to gradually diversify away from US dollar assets. Beijing has gradually been cutting its holdings of US Treasuries while pushing to expand the yuan’s global use and developing alternative financial architecture. While these issues may not have featured in the...