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That will, of course, also depend on whether Trump carries through on his threats to declare China a currency manipulator, impose punitive tariffs on Chinese imports into the U.S., and whether he abandons the ‘One China’ policy.
Liquidating a big chunk of U.S. debt holdings could roil financial markets and force the United States to scramble for funds, but analysts believe such a move by Beijing would risk starting a fire sale in which the value of its own portfolio would burn.
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