>China has no serious alternative to Treasuries

Someone should tell the Chinese that, because they've been a net seller of US treasuries for some time now. They are clearly at a minimum diversifying right now. I'm sure if you ask some people they will say "diversifying" isn't a strong enough word for the velocity of the changes we're seeing. "De-linking" is the popular word these days for what's going on. Truth, as always, is likely somewhere in the middle.

Obviously we can't see all that goes on inside China, but we have 100% visibility on what's happening with US treasuries. Regarding the whole picture, just from what is publicly reported, it certainly seems like China is betting on what appears to be, themselves. Maybe that's a good market in the future and they make out like bandits? Maybe it's a bad market and they take significant hits? Not really sure anyone can say with certainty right now?

If I was forced to bet, I'd say it will pay off, but not as big as they think. Probably big enough to not really need the West though. Which is a strategic win I suppose?