China may dump U.S. Treasuries as Sino-U.S. tensions flare - Global Times

[SWBTATTReg]

8. I thought that they (the Chinese) have already been cutting their exposure to these US bonds and ...

securities, for years. One thing people seem to not realize that why would the Chinese, in flooding the marketplace w/ these bonds and notes, would hurt their rate of return by dumping these things, thus depressing the price(s) of bonds and notes, etc.?

Doesn't make sense and this very same argument was made before (years and years ago) that they would be selling these things (but didn't) and the same argument back then was made that why would the Chinese kill their rate of return by selling off their portfolio early, incurring penalties and losses, etc.?

Why would the Chinese (along the same lines) depress the value of the US Dollar as some would seem to think (and still do), when they would get fewer US Dollars after selling their US Dollar based assets? The Chinese literally have roughly $180 billion of investment in the U.S. today (per google), remember, trade deficits?).

Again, I suspect very strongly that these stories of hysteria originate from republican sources (figures), who are trying to stir up resentment etc. of some sort. Which is totally ignorant and not well thought out, I mean, think about it, would you take a loss in the literally tens of billions of dollars (out of billions and billions in assets) just to, eh, do what? force down the value of US Dollar based assets probably for a very short interval of time to make a point of some kind?