China Parries US Tax Reform

The single greatest threat China has is US tax reform and the consequential repatriation of hundreds of millions of dollars back to the US.  Although this would damage both the Fed’s and Treasury’s historical mien of demand based inflation, an appreciating currency with greater US petrol output would continue a true American Reaganite expansion.

What is Chinese policy to parry US tax reform and dollar denominated repatriation?

Beijing’s Central Bank re-denominated, readjusted its exposure to US Treasuries.  It re-constructed its portfolio seeking diversification of its foreign exchange reserves.

Here’s what the Chinese Central Bank portfolio looks like now.

This war ain’t over yet!


About William Holland

Systematic Theologian/International Relations
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