Experts urge China to trim US T-bond holdings

BEIJING - China should reduce its holdings of US Treasury bonds to protect the value of its massive foreign exchange reserves despite reassurances from US Vice-President Joe Biden, analysts said on Thursday.

"China should move progressively to cut its holdings of US Treasury bonds and use it as leverage to ask Washington to further open its markets, including the high-technology sector, to Chinese investment," Xiang Songzuo, deputy director of the Center for International Monetary Research at Renmin University of China, said at a forum.

"Washington should provide a guarantee on the safety of China's assets," while it is creating global inflationary pressure through quantitative easing to stimulate its economy, Xiang said.