Analysis: China Positions for "Debasement Trade" by Dumping Treasuries, Buying Gold

China is reportedly positioning itself for the debasement trade by dumping U.S. Treasuries and buying gold, according to the source. China is both the world's largest gold producer and largest gold consumer, with gold imports surging roughly 50% in the first half of 2026 versus the same period in 2025.
The source argued the Western sovereign debt bubble is "in critical condition" and that China is aware of this dynamic, adding that most holders, including China, do not own enough gold for what's ahead.