Chinese Official Warns Against Holding Too Much U.S. Assets, as "U.S. Could Pursue Weakening of The Dollar"

Chinese officilas have again warned against risks from excessive"holdings of U.S. assets. What they are afraid of: that the U.S.could pursue a policy to weaken the dollar: "We must be alert of economic and political risks in excessive holdings of U.S. dollar assets,"

Those are the words by Guan Tao, head of the international payment department at the foreign exchange regulator
"The United States has taken an expansionary fiscal and monetary policy to stimulate economic growth, and the United States may find it hard to resist the policy temptation of weakening the dollar abroad and pushing up inflation at home,"
According to Reuters, market conditions are favorable for China to forge ahead with market-based reforms of the yuan regime, however there is no basis for any sharp yuan rise.

"... some economists have said as much as 70 percent of the country's foreign exchange reserves, which hit a record $3.05 trillion at the end of March, are parked in dollar assets".