You are 100% correct. The quiet walk from Treasuries keeps going.
This last move by China liquidated about 2.5% of their holdings. That sounds small, but it’s not.
I'm not sure just how this helps them, or anyone else. The were holding interest bearing paper; and now they are holding non-interest bearing paper.
ML/NJ
This is part of their de-coupling from us. It was only a matter of time. China News has been running articles about their internal consumption being more and more a part of their economy. Meaning that instead of selling cheap toxic junk to us, they will sell it to each other.
The Treasuries move is China’s way of trying to sneak out the side door before someone yells “Fire!”