China directs banks to sell American treasuries

Chinese Communist Party officials have told banks to reduce holdings of U.S. treasuries, Bloomberg reported on Monday, even advising those with larger holdings to begin selling. This reveals not only weaker trust in the U.S. dollar but a financial war warning shot. The Chinese government controls roughly $680 billion in U.S. bonds. Selling a significant portion of these assets would decrease their value and harm China and other nations, but it would devastate the already shaky American financial system.