In the US-China Trade War, US Treasuries Become Strategic Assets as Foreign Investors Add $32.4 Billion in May
Amid the ongoing US-China trade war, US Treasuries have increasingly become viewed as vital strategic assets by global investors. Recent data has shown that foreign investors added $32.4 billion in US Treasuries in May, bringing their total holdings to a near historical high. This trend indicates that despite a turbulent international economic environment, many investors maintain confidence in the stability of the US economy and are choosing to funnel their funds into US debt.
Analysts point out that the tariffs imposed by the Trump administration have heightened tensions in trade between the US and China, compelling many nations to reassess their asset allocation strategies. Against this backdrop, US Treasuries have gained favor due to their relative safety, attracting a significant influx of foreign capital. According to statistics, the continuing increase in Treasury holdings in May reflects not only a demand for risk aversion but also showcases long-term confidence by countries in the American economy.
Additionally, reports indicate that Taiwan's Vice President Lai Ching-te will transit through the United States and is expected to announce plans for Taiwan's sovereign fund to further invest in US Treasuries. This news has caught the market's attention and has led many analysts to predict an influx of additional funds into the US market, especially during a time when the global economy faces many uncertainties.
From a geopolitical perspective, the United States, as the world's largest economy, presents a safe haven for investors. As competition between the US and China intensifies in trade and technology sectors, the trend of capital flow may further accelerate, potentially reshaping the landscape of international capital markets and guiding policy choices for more countries.
In light of this context, the direction of US economic policies, trade relations, and developments in international situations over the next few months will have a significant impact on investment returns and pricing trends for US Treasuries. Various market predictions also suggest that foreign investors’ interest in the US economy will remain strong, continuously regarding US debt as an essential part of their asset allocation.




