# China, holding Treasuries, keeps 'nuclear option' in U.S. trade war

> Reuters reports China holds large US Treasury holdings and retains them as a possible lever in the trade war. Analyst Setser says letting the yuan depreciate would be a more likely way to raise pressure, and the yuan weakened about 0.25 percent on the day.

- Date: 2018-04-04 · published 2018-04-04T12:00:00.000Z
- Category: trade · region China · magnitude low
- Page: https://feedsoft.ai/events/65715-china-holding-treasuries-keeps-nuclear-option-in-u-s-trade-war
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [Soybeans](https://feedsoft.ai/c/SOY.md)

## Why it matters

A weaker yuan would make US farm imports pricier for China, a possible channel for reduced US soybean and feed demand if Beijing pushes currency depreciation.

## Read by commodity

- SOY: neutral
- USDCNY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2025-04-24 | [China's yuan slightly weaker as dollar climbs on trade-war deescalation signs — TradingView News](https://feedsoft.ai/events/25353-china-s-yuan-slightly-weaker-as-dollar-climbs-on-trade-war-deescalation-signs.md) | -0.2% | -1.2% |
| USDCNY | 2017-03-07 | [March 2017 Trade Bulletin \| U.S.- CHINA \| ECONOMIC and SECURITY REVIEW COMMISSION](https://feedsoft.ai/events/71847-march-2017-trade-bulletin-u-s-china-economic-and-security-review-commission.md) | +0.1% | -0.2% |
| USDCNY | 2025-09-30 | [Argentina’s soybeans are rewriting the trade story \| World Ports Organization](https://feedsoft.ai/events/23077-argentina-s-soybeans-are-rewriting-the-trade-story-world-ports-organization.md) | +0.0% | -0.3% |
| USDCNY | 2020-05-11 | [Goldman Says Tariffs Are Key Metric for Yuan in U.S.-China Rift - Bloomberg](https://feedsoft.ai/events/53381-goldman-says-tariffs-are-key-metric-for-yuan-in-u-s-china-rift-bloomberg.md) | +0.4% | -0.0% |
| USDCNY | 2019-02-26 | [China urged to avoid cautionary tale of Japan and the Plaza Accord in currency deal with US \| South China Morning Post](https://feedsoft.ai/events/60811-china-urged-to-avoid-cautionary-tale-of-japan-and-the-plaza-accord-in-currency.md) | +0.3% | +0.4% |
| SOY | 2018-05-23 | [U.S.-China trade row sows confusion in farmer planting plans](https://feedsoft.ai/events/64914-u-s-china-trade-row-sows-confusion-in-farmer-planting-plans.md) | -0.7% | -13.7% |
| SOY | 2020-01-15 | [What's in the U.S.-China Phase 1 trade deal](https://feedsoft.ai/events/54939-what-s-in-the-u-s-china-phase-1-trade-deal.md) | -1.6% | -3.9% |
| SOY | 2018-10-02 | [Panama weighs cargo options as US-China trade dries up \| Freight News](https://feedsoft.ai/events/62428-panama-weighs-cargo-options-as-us-china-trade-dries-up-freight-news.md) | +1.4% | -2.2% |

## Sources

- reuters.com: https://www.reuters.com/article/business/china-holding-treasuries-keeps-nuclear-option-in-us-trade-war-idUSKCN1HB34M/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.