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Feb 10, 2026
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WATCH
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Beijing has advised financial institutions to limit purchases of US government bonds. This is "leverage signaling." Just as China uses rare earths or pharmaceutical precursors as leverage in trade negotiations, they are now signaling that financial dependence cuts both ways. They are demonstrating the ability to squeeze US financing ahead of diplomatic meetings. This follows a pattern of China using economic choke points (like critical minerals) to exert political pressure. While current guidance is moderate, this highlights long-term sanctions risk, particularly if a conflict over Taiwan escalates. |
CNBC
China signals leverage as markets downplay Tr...
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