Time and again it has been speculated that China – American’s largest foreign creditor – may stop or reduce investment into the US bond market in response to White House’s trade tariffs.
The world’s second-largest economy, however, feels the US government bond market is a good place to invest.
“China will not in any way significantly reduce its investment into the US bond market,” said senior securities regulator Fang Xinghai while attending the ongoing World Economic Forum in Davos, Switzerland, on Tuesday.
“We have to invest abroad, and the US government bond market turns out to be a good place to invest”, Fang added.