Escalating trade conflicts between China and the United States will pose greater financial risks to the U.S. compared with China, experts said.
Ha Jiming, senior researcher at China Finance Forum, said on Saturday that China will not actively dump its holdings of U.S. treasury unless needed.
"Dumping U.S. treasury holdings is not China's strategy to win," said Guan Tao, member of the China Finance 40 Forum.
"However, we cannot exclude the possibility China will gradually sell its holdings of U.S. treasury," Guan added.
Recently proposed U.S. tariffs on 0 billion worth of Chinese imports has triggered selloff in U.S. stocks and the global financial market.
Earlier last week, the U.S. proposed new tariffs on billion of Chinese products, followed by tariffs on U.S. imports levied by the Chinese government.
"Actually, the U.S. trade deficit will be lower if the U.S. government stops posing limits on high-tech exports to China," Ha said.