China weighs options in response to Trump's tariff threat over dollar dominance
Donald Trump has warned BRICS nations of a potential 100% tariff if they undermine the US dollar in global trade. He emphasized that these countries cannot easily replace the dollar and must avoid challenging its dominance. In response, China is considering several strategies, including selling its $734 billion in US Treasury bonds, which could disrupt global markets. However, this move risks diminishing China's own financial stability. Other options for China include devaluing the yuan to boost exports, restricting rare mineral exports, and targeting US companies operating in China. Additionally, China is strengthening ties with traditional US allies to mitigate the impact of potential US economic actions.