China has been selling US Treasury holdings, converting dollars to euros and buying European bonds, as part of a broader economic strategy aimed at weakening the US economy. This move may be seen as a strong message by China, making it more difficult for the US government to borrow money in the future. The tactic is seen as a tool in an “economic war” between the two countries, where China uses its available assets to exert pressure on the US.
Source: https://www.schiffsovereign.com/video/did-china-take-a-loss-just-to-hurt-the-u-s-economy