It's time to stop treasuries being such risky business

China must urge the United States to find solutions to the risks of China holding US Treasury debt at the upcoming Strategic and Economic Dialogue (SED), as possible dollar depreciation in the future would add to the woes of the nation.

The US Treasury Department reported on Monday that China's holdings of US bonds rose to $895.2 billion in March from $877.5 billion in February. The $17.7 billion increase was the first by China, also the largest holder of the US treasuries, since last September.

Although it is hard to say whether the United States will lobby China on buying more treasuries during the upcoming China-US SED, due to take place on May 24-25, an undeniable truth is that China is under pressure by holding such large volume of US treasuries, especially considering the continued depreciation of the dollar.