> Offloading foreign currency holdings in a mass sell-off is not something China would WANT to do
I'm sure China is not only guided by purely economic considerations here. They might already consider the possibility that China/Russia will soon be in a war with the US.
It might make sense here to take an economic hit to bankrupt the US (or at least threaten it) to prevent an active military confrontation.
> Not even as an economic warfare tactic: the global economy is dependent on cheap US money, and messing with that would set off a global recession that would hit an emerging superpower like China especially hard.
People will suffer when countries engage in economic warfare and even more so if they engage in war. This has never held off a country escalating from economic tensions up to military actions.
If China deems this is necessary because it is the best choice they have, they will certainly do it no matter what.
I'm sure China is not only guided by purely economic considerations here. They might already consider the possibility that China/Russia will soon be in a war with the US.
It might make sense here to take an economic hit to bankrupt the US (or at least threaten it) to prevent an active military confrontation.
> Not even as an economic warfare tactic: the global economy is dependent on cheap US money, and messing with that would set off a global recession that would hit an emerging superpower like China especially hard.
People will suffer when countries engage in economic warfare and even more so if they engage in war. This has never held off a country escalating from economic tensions up to military actions.
If China deems this is necessary because it is the best choice they have, they will certainly do it no matter what.