InvestorQ : How is China planning to react to the threat from the US that they would freeze all their debt of $1.2 trillion to China?
manisha Kolvenkar made post

How is China planning to react to the threat from the US that they would freeze all their debt of $1.2 trillion to China?

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Mahima Roy answered.
1 year ago
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Interestingly, Trump has been trying to pressure China by holding interest payments on debt and forcing Chinese companies to delist. This is in retaliation for China not taking action to prevent the spread of Coronavirus. US has put sanctions on Huawei, is forcing Chinese companies to delist and has threatened to default on $1.2 trillion of US treasuries held by China. However, China has already put in motion Plan-B. China has been encouraging its domestic companies to seek listing on the London Stock Exchange. This alliance was also supposed to give Mainland Chinese investors access to investing in UK-based companies. Some of the Chinese companies like insurer, China Pacific Insurance, and China Yangtze Power are due to list in London soon. In the past, the US has put such specific sanctions on Iran and Venezuela but China is a different ball game altogether. This could be interesting.

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