He Fan – the Chinese Academy of Social Sciences:
China has accumulated a large sum of US dollars. Such a big sum, of which a considerable portion is in US treasury bonds, contributes a great deal to maintaining the position of the dollar as a reserve currency. Russia, Switzerland, and several other countries have reduced the their dollar holdings. China is unlikely to follow suit as long as the yuan’s exchange rate is stable against the dollar. The Chinese central bank will be forced to sell dollars once the yuan appreciated dramatically, which might lead to a mass depreciation of the dollar.
– About the nuclear blackmailing on Wikipedia
– China may sell off Treasury bonds if US imposes trade sanctions – report in Forbes
– China threatens ‘nuclear option’ of dollar sales – Telegraph.co.uk
Using $1.33 trillionÂ of foreign reserves is a greatÂ political weapon – who needs nukes anymore?