Experts: China will not sell US government bonds in retaliation


(Photo: CGTN)

Unsurprisingly, the recent China-US trade disputes have become one of the most discussed topics at the Boao Forum, a four-day event that started Sunday with the theme of "An Open and Innovative Asia for a World of Greater Prosperity."

In an interview with CGTN, asked about whether China would sell US government bonds as retaliatory measures, Zhang Yuyan, Director of the Institute of World Economics and Politics, said that the chance was slim.

“If we sell them, the interests rate in the US will go up. It will influence the value of the dollar. Investors will also be affected. We cannot exclude the possibility, but the chance is slim.”

He also suggested to “separate trade from finance” when dealing with trade friction. “If we extend the current issue to finance sector, the problem will escalate limitlessly. The separation will help both sides, especially the US, to deal with the problem rationally.”