Newsweek – China's Moves Away from US Dollar Hit New Milestone

https://www.newsweek.com/china-moves-away-us-dollar-hit-new-milestone-1901901

Craig Shapiro, a macro adviser to LaDuc Trading, identified three primary reasons for this trend. “The handling of Russian reserves by the U.S. and other G7 countries, including threats of expropriations and sanctions, likely prompted China to reduce its exposure to U.S. treasury assets to avoid being similarly targeted,” he told Newsweek.

He also noted the impact of rising U.S. fiscal deficits.

China probably anticipates that U.S. interest rates will continue to rise due to persistent fiscal deficits, making it prudent to sell now rather than risk losses or repayment in devalued dollars,” he added. Selling these holdings could help China manage its domestic economy without risking the devaluation of the yuan.