(USA Features) The Trump administration could seize U.S. Treasury obligations held by China as compensation for the Communist regime’s alleged negligence over the coronavirus pandemic, according to a noted critic of the regime.
Gordon Chang, a columnist for the Daily Beast and author of “The Great U.S.-China Tech War,” offered his comments during an interview with Breitbart Radio on SiriusXM Monday night.
At present, the Chinese government has roughly $1.2 trillion in U.S. Treasury holdings.
“What the United States can do is just simply seize the treasury obligations that China holds in their own name, they hold a little more than a trillion U.S. dollars in treasuries, probably through nominees they hold some more,” Chang told the program, according to Breitbart News.
“But what I recommend is that we not do this alone, and the reason is that China would say that this was a repudiation of debt. They would say that we were bad stewards of the global financial system. They would just tar us and they would actually go after the dollar,” he added.
“What we can do is work with the issuers of other major currencies,” added Chang. “For instance, the Canadian dollar, the pound, the Swiss Franc, the euro, the yen, if we were to do that, and if all these countries were going to confiscate assets, then we have the makings of a real solution.”
He also said that “of course” the U.S. could never receive enough compensation for the lives that have been lost.
“We’ve got lives lost, and even if you were just to look at this as a financial play, the amount that we could seize would be far less than the damage China has caused. But the important thing for us is that we’ve got to deter future bad actors, because if the Chinese get away with this, then others will think that they can do the same thing,” he said.
“This is probably not the last pandemic that comes from China,” Chang continued, adding that the Communist government should be taught a lesson it would “never forget.”