China wages trade war against US, remains largest investor in US debt

The government of the People's Republic of China continues reducing its investments in the public debt of the United States of America. In July of this year, Beijing withdrew almost 8 billion dollars from the US, a message posted on the website of the US Treasury said.

Photo: Source: Fotodom.ru/DP

Curiously, despite the reduction of its investments, China still remains the largest investor in the US public debt. At the moment, Beijing owns US bonds worth the total of $1.1 trillion. Japan comes second with $1 trillion. Ireland comes third on the list - the country holds US bonds worth $300 billion.

On September 18, US President Donald Trump announced the introduction of new tariffs on Chinese products worth $200 billion from September 24. Until the end of 2018, the tariff rate will be 10%, but it will grow to 25% in 2019. China responded with tariffs on American goods worth $60 billion with a tariff rate of 5% and 10%. USA's previous package of duties that was put in effect in August, embraced Chinese goods worth $16 billion with a tariff rate of 25%. China responded with tariffs on US goods totalling $34 billion.

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