On the surface, the pace of China's reduction of US Treasury bonds seems to be consistent with China's efforts to reduce foreign exchange market intervention and continuously promote the diversification of foreign exchange reserves. In the first quarter of this year, China's central bank significantly reduced its intervention in the foreign exchange market, which showed China's determination to promote the reform of exchange rate marketization. Over the past year or so, the central bank has gradually withdrawn from the normalized market intervention, and the market is playing a greater role in the formation of the RMB exchange rate. In recent years, China has not only increased the allocation of non-US dollar assets in foreign reserves, but also diversified the allocation of US dollar assets. Among them, the proportion of US long-term treasury bonds gradually decreased from 20 10, while the proportion of US dollar securities increased. Although China's demand for US Treasury bonds will not be as great as before, with China encouraging domestic investors to increase their foreign investment, China's demand for US dollar assets and US Treasury bonds may fill the gap of China's banks for a long time.

Of course, on the whole, as a financial tool or financial product, buying American debt is essentially a market economy behavior, and American debt has always been the "safest" and highly liquid asset in the world, so it has become the first choice of central banks. Buying more and buying less US debt depends on the market and its own demand. However, if this kind of economic behavior reaches the level involving the international political pattern and the rejuvenation of the nation-state, it is no longer a simple economic behavior, but a means or tool for the game between big countries. In addition to the current changes in the flow of funds, in the long run, China's gradual reduction of US Treasury bonds may continue. China does not want its policies to be bound by the US economic situation and financial diplomacy strategy, and is trying to get rid of excessive dependence on the US dollar, and is exploring the diversification of the use of foreign exchange reserves.