AvailableChoice3130

From the previous US restrictions on China, it seems they didn't stop the development of Chinese chips and other technologies, but instead pushed them to break through some technological limits. However, some domestic prices have still gone up.

These are some things I've heard:

The dollar could weaken If China sells Treasuries and converts the proceeds from dollars into other currencies/assets, that can put downward pressure on the dollar.

Suppose the U.S. runs very large deficits year after year. Eventually investors may say: "If you're going to borrow this much, I want a higher interest rate." That can create a feedback loop: Large deficits → more Treasury issuance