Why buy U.S. Treasury bonds, mainly because the United States is a country that relies on borrowing and consumption, and because it is the first power, the US dollar has become the world's payment and reserve currency, which means that the US dollar can remain strong in the world and has capital to borrow money everywhere; China is a big country in foreign trade, export and manufacturing, and has accumulated a large amount of foreign exchange-US dollars through foreign trade and foreign investment in China. Then ask China, after holding a lot of dollars, not to buy US Treasury bonds. What is better than buying US Treasury bonds? First of all, China's foreign exchange reserves-US dollars are not all our own. In addition to the US dollars earned by domestic enterprises, there are foreign companies' investments in China, or foreign exchange earned by exports, as well as assistance from developed countries and loans from major financial institutions in the world, such as the World Bank; There are also some "hot money" that just want to earn profits in China in the short term. When they enter China, they will take US dollars to the bank and change them into RMB for domestic use. At the same time, they can change them into dollars at any time and propose to transfer them abroad. In addition, domestic enterprises need to use US dollars whenever they go abroad to buy technology, equipment, oil, ore and other raw materials, because the US dollar is the world's payment currency. These foreign currencies must be preserved and increased in value, and they can be paid at any time. Investing in US Treasury bonds is the best channel. US Treasury bonds have the best liquidity and the most developed financial market. All countries and financial institutions in the world invest in US Treasury bonds. To put it bluntly, they can cash their US Treasury bonds in the market at any time for their own use, as well as interest income.

Buying stocks is too risky, so we should buy goods vigorously. What China bought went up, and the price plummeted after buying it. Buying other countries' bonds is not as liquid as American bonds, and the risk is low, so buying them may not be able to sell them.

Reducing the investment in U.S. Treasury bonds will narrow the investment channels of China's foreign exchange reserves, resulting in holding a large amount of cash, which cannot preserve and increase its value. At the same time, holding this cash has a cost, because we have to pay interest. At the same time, reducing the holdings of US Treasury bonds will inevitably tell the world that we look down on the US economy and government and sell US Treasury bonds, which will lead to a decline in the price of US Treasury bonds and shrink the unsold Treasury bonds in our hands; This will also hit the American economy and reduce imports from the United States. A large number of our foreign trade factories will close down and workers will lose their jobs. The closure of the factory will also reduce the use of raw materials such as coal, electricity, oil, metal and cement in the upstream, and trigger a chain reaction of China's economy.