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The article reports that U.S. bonds still comprise a major share of Chinese foreign reserves. According to the author, there are reports saying that China is cutting its holdings of U.S. bonds. As of this moment, China is still the second largest holder of U.S. bonds, retaining 10 percent of all tradable bonds of the U.S. Some analysts are concerned that the new moves of China to reduce this number will pull the U.S. bond market down and further weaken the dollar.

The article reports that Chinese Premier Wen Jiabao has urged the U.S. government to take effective measures to stabilize the dollar and prevent the global economy from entering a recession. According to the article, increasing international crude oil prices ad the depreciating U.S. dollar has caused concerns among Chinese citizens. Some analysts have argued that the depreciating dollar has caused the value of China's foreign reserves to shrink sharply.