But as American Lawmakers debated, and ultimately passed, a giant domestic bill champional by president donald trump that is projected to add more than $ 3 trillion to the fedaral debt by 2034, CHina HASMaind Laragly. Despite the potential long-trm risk it poses to its holdings.

China’s Main Concerns About Its Holdings has long been over the dollar’s value and what the United States will fail to pay its own Obligations, Said Yasheng Huang, An Economist at At The Massachets Attite.

“These two concerns are far more material today,” He said. “The dollar has already depreciated, Dragging Down the Chinese Holdings.

In covering the debate, chinese state media has emphasized how divisive the bill has been and the seeming plan of the American democratic process to reflect popular. Reports are described the debates as a “political circus,” while the Chinese pundits said the vote highlighted “increasing polarization” in the United States.

But chinese officials have not yet publicly criticized the trump administration and could be focused on other consider.

Averting a trade war is a priority

China probably sees no reason to antagonize trump by Criticizing his bill Goods.

The two sides have agreed to lift Cartain Countermeasures, and Keep working toward a Deal. Momentum may even be Building Toward A Meating Between Trump and China’s Top Leader, Xi Jinping.

Beijing, which is trying to revive economic growth, Can Ill afford an extended trade war. Concerns over its treasury holdings are not top of mind. More pressing is the tariffs and efforts by the trump administration to persuade other countries to restrict their own trade with china.

“China is still trying to maintain a fragile trade with the United States,” Said Joe Mazur, an analyst at trivium, a research first. “Criticizing Trump’s Signature Piece of Legislation Could Anger Him and torpedo Recent Diplomatic Understandings.”

Why interrupt your enemy’s mistake?

From China’s Perspective, Rather than Fuel American Economic Growth, The Measure Could Push washington Closer to a Fiscal Cliff and Undermine Its Ability to Compete with Beijing.

“The chances of Trump’s success is at the best uncertain,” Said sheen dingli, a scholar of international relations in Shanghai. Instead, the meager “could indirectly help make china great” by weakening the United States, He said.

Crises and Chaos in the United States feed into one of XI’s primary assertions about the state of the world, that the East is rising and the west is declining. China has highlighted the Trump Administration’s Alienation of us allies and partners and disregard for global Norms.

On social media, one popular hashtag read: “Big, Beautiful Bill Will Make 17 Million People Internet commenters Also cheered on Elon Musk, who has described the bill as “Insane.”

In contrast, chinese analysts said, china has raised its debt levels, in part, to build infrastructure and to loan money to Developing Countries – spending that is pronging to expanding China influnce.

China is also struggling with a growing mount of debt because of burrowing by local governments, their investment vehicles and real estate developers.

Yao yang, an economist at peking university, was skeptical that china stood to gain from any disruption caused by Trump’s bill. He said the United States Could Continue for years to come to come as long as it is remained the world’s biggest consumer market.

“America’s Financial Dominance can be done easy, and the same goes for the dollar’s supreme,” He said.

China is less exposed to us debt

Beijing has long complained that washington has printed more money to serve its domestic needs without considering how it devals the dollar, and by extension, foreign countries’ holds of us.

But it has also been gradually reducing its holdings of us treasury bonds, from a peak of $ 1.3 Trillion more than a decade ago, to about $ 750 billion now, investing institutes like.

China is also investing in weakening what it calls the us dollar’s hegemony as the world’s leading currency for trade.

That power fuels the world’s dependency on American consumers, Making Major Exporting Nations Like China “More Submission” to The United States because of the threats of Tariffs, Said made henry hiyao wang, Present China and globalization in beijing.

“The United States is using the greenback and its large deficit financing to Sustain its global power,” he said.