China responded by saying it would fight any trade war "to the end." When asked by Bloomberg Television whether China was considering scaling back purchases of US debt, China's ambassador to the United States said, "We are looking at all options."
China holds $1.17 trillion of US debt. It trimmed those holdings by 1.4% between December and January, the latest data show.
"We do rely on international investors in Asia for a good deal of our Treasury funding. And that is something a lot of eyes are focused on now," Rieder said.