from Sputnik News:
WASHINGTON (Sputnik) – Secretary of State Antony Blinken likely sought to stabilize relations with Beijing because Washington has begun to feel pressure from China’s withdrawal of support for the dollar and the enormous US government deficit, analysts told Sputnik.
From June 18-19, Blinken visited China for talks with President Xi Jinping, Director of the CCP Central Foreign Affairs Office Wang Yi and other senior officials. During the trip, the secretary highlighted the importance of maintaining open channels of communication and made clear that the United States will responsibly manage the competition so that the relationship does not veer into conflict.
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“The United States is feeling itself squeezed and probably needs to make nice with China,” Krainer Analytics founder Alex Krainer told Sputnik.
“The United States has painted itself into a corner with China: they want to do their usual destabilization/regime change thing, except China is still the second largest creditor the United States has, and it has been getting rid of the US debt quite aggressively over the last two years.”
Now China and Russia are increasingly shifting to national currencies in their trade and that could lead to many other nations abandoning the dollar and triggering a huge financial crisis in the United States, Krainer warned.
“If they [the Chinese] continue to dump US treasuries, they could depress its price, push interest rates higher and trigger a selling stampede by other nations as well. This is one of the biggest risks that the United States is facing,” he said.
Independent Institute Center for Peace & Liberty President Ivan Eland believes that Blinken’s trip was meant to stop the relationship between Washington and Beijing from deteriorating even further.
