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As reported in an exclusive by Reuters, China’s ambassador to the US, Cui Tiankai told Reuters in an exclusive interview that he doesn’t believe that Shanghai  is considering using their ample supply of US Treasuries as a weapon in the Sino-US trade war.

Key quotes

“We don’t want to cause any financial instability in global markets. This is very dangerous, this is like playing with fire,”  Ambassador Cui Tiankai told Reuters.  “I don’t think anybody in Beijing is thinking seriously about this. It could backfire,” he added.

Trade and economic analysts have often said China could slow its purchases of U.S. Treasuries or sell off its holdings to pressure Washington into a deal.

Cui said China’s Treasury holdings were a good example of the economic interdependence between the United States and China “” a relationship that he said would be nearly impossible and dangerous to untangle.