Xi-Trump Summit Leaves China's US Dollar Pivot Unaddressed

Beijing is gradually decreasing its investment in US Treasuries while simultaneously establishing a financial safeguard for the yuan, a move that could draw increasing attention from Washington. During last month's significant summit in Washington, President Xi Jinping and US President Donald Trump addressed tariffs, agricultural quotas, and essential minerals, yet China's slow shift away from US dollar assets remained an unspoken topic. Although these issues were absent from the summit's official statement, they have caught the attention of economists, investors, and policymakers on both sides of the Pacific. Charles Chang, a finance professor at Fudan University, noted that discussions about China's US debt holdings likely occurred, but a formal agreement akin to trade deals seemed improbable due to the sensitive nature of sovereign debt management. Meanwhile, Beijing continues its efforts to enhance the yuan's global prominence and create alternative financial systems alongside its reduction in Treasury assets.