In fact, China's holdings of US Treasury bonds have been reduced recently, but this data has not been reflected in the public statements, and may be reflected in the newly published statements.

Many people know that dollar hegemony has actually brought a lot of extra benefits to the United States, but it has also caused some damage to other countries' interests. In the case that the Federal Reserve continues to monetize its debts, the dollar will depreciate sharply in the future, and the intention of letting other countries bear their own inflation will be more obvious. Therefore, there are many demands for dollarization and selling national debt in the world, but this is not realistic in the short term.

First of all, even though everyone knows the disadvantages brought by dollar hegemony, no world currency can replace the dollar in the short term. Therefore, dollar hegemony will be maintained for some time, and international trade must be settled in dollars. We must maintain the cash flow of such dollar assets to ensure the pressure of payment. In this case, US Treasury bonds are equivalent to circulating US dollars, which can be settled at any time to deal with international settlement. Therefore, in the case that foreign exchange reserves can only reserve more US dollars, it is a practical need for central banks to buy US Treasury bonds instead of taking the initiative to input funds for the United States.

In other words, if we reserve other assets, such as gold, we must first realize the assets such as gold when we make payment. This cost and time are not as cost-effective as those of American debt. Therefore, in the case that China's foreign exchange reserves are mainly in US dollars, we can only hold more US debt. Now, due to the pressure of international payment, we can only reserve more US dollars in foreign exchange reserves.

On the other hand, some time ago, international asset prices plummeted, and sovereign funds of all countries were under the pressure of selling assets, so cash was king, and at that time it was the best hedge. At one time, the value of the US dollar rose rapidly, and the price of US debt also rose steadily with the support of selling assets by various countries and quantitative easing by the Federal Reserve. In this case, holding US debt is not only a safe-haven demand, but also a relatively safe investment method, so what we are seeing now is that all countries are increasing their holdings of US debt in March.

However, as the pressure of asset price collapse is easing, and the continuous purchase of US Treasury bonds by the Federal Reserve is weakening the value of US Treasury bonds, in fact, in the past month, the momentum of countries reducing their holdings of US debt has been very fast, but these statistics have not been shown for the time being. We can clearly see the number of countries reducing their holdings of US debt from the data in April.