China buying more European debt, less US...

Financial TimesChina began diversifying away from the US dollar in earnest in the first four months of this year, most likely by buying far more European government debt than US dollar assets, according to estimates from Standard Chartered Bank. China’s foreign exchange reserves expanded by around $200bn in the first four months of the year, with three-quarters of the new inflow invested abroad in non-US dollar assets, the bank estimated. “It certainly appears that China’s finally following through on its policy to diversify its foreign reserve holdings away from the US dollar,” said Stephen Green, the bank’s chief China economist.

Haven't got time to comment I'm afraid, gotta shoot out. Thought I'd share it though.

Economic War?

Financial Times

reply to post by TechUnique


I don't think its economic warfare. China is just reacting to the reality that the US dollar is on the brink of collapse. There is no possible way the US can ever repay its debts and the way the Fed keeps on inflating our currency, it is only a matter of time before super inflation sets in.

China is only doing the smart thing; divesting in its US currency before it becomes totally worthless. Its what any smart investor would do.

the smart thing and heading to the euro, please it has very little merit, if US goes down so will europe, its probably just to imbed itself with more political relationships not the security of assets

Quote: "most likely by buying far more European government debt than US dollar assets, according to estimates from Standard Chartered Bank."

Ummm MOST LIKELY? They dont even know-just speculating. Sorry i hate news articles that may be predicated on falsehoods. Plus with the situation in Greece, the Euro is not very stable as the EU is just as much on the brink of collapse even moreso than the US.

From what I understand fund managers have been advising investing the first half of the year in the US and as QE2 comes to an end to move the investments towards the East.

Tho I would have thought from Chinas perspective they might be looking at picking up a few bargains here and there in Europe at the moment..

its just smart business

buy low and sell high and never keep all your eggs in one basket and diversify.

they are covering their bases sooner or later china will stop lending the us money.

it is a crying shame that china is more capitalistic than we are.

and thats leading to our downfall and the rise of the eastern dragon.