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According to Cailianshe, the U.S. Treasury Department recently released the International Capital Flows Report (TIC) for May 2024. The report shows that the scale of U.S. Treasury bonds held by foreign investors hit a record high in May. However, the top two overseas "creditors" of the United States, Japan and China, both chose to reduce their holdings that month. This is the first time this year that China and Japan have reduced their holdings of U.S. debt in the same month. The report shows that the scale of U.S. Treasury bonds held by China in May fell by US$2.4 billion month-on-month to US$768.4 billion. This is the smallest change in China's U.S. debt holdings (whether increase or decrease) in at least one year.

"The U.S. national debt has exceeded $35 trillion for the first time," the New York Times said on the 29th, reminding people that the United States is in a serious financial predicament. The Peter Peterson Foundation of the United States vividly described: If these huge debts are shared among the American people, it means that each person will owe nearly $104,000 and each family will owe more than $260,000. The unrestrained expansion of U.S. debt means that interest expenses are getting higher and higher, squeezing out the U.S. government's investment in the public sector. If Washington continues on the current path, the debt ceiling may be repeatedly breached, leading to consequences such as credit rating downgrades and financial market turmoil. These impacts will have an impact on the credit of the U.S. government and the U.S. dollar, and weaken the dollar's dominance in the global monetary system in the medium and long term.

It is worth noting that recently, China has imposed a five-year anti-dumping tax on another product from the United States. After the United States imposed tariffs on Chinese electric vehicles, military provocations in the Asia-Pacific region, and threats from the Trump team, China once again used trade means to counter the United States, restricting the manufacturing sector that the United States has paid special attention to in recent years. The Chinese Ministry of Commerce's countermeasures this time are to officially implement a 43.5% anti-dumping tax on imported propionic acid from the United States from July 21. This is China's eighth round of economic and trade sanctions against the United States this year. Previously, China has repeatedly countered and precisely suppressed key industries in the United States, and this time is no exception.