Global Economy Amid Shifting Government Investments and Corporate Leadership: China Reduces U.S. Bond Holdings While Tesla Strengthens Its Board

In a scene reflecting the divergence in global economic policies, China continues to reduce its exposure to U.S. debt,
while Tesla aims to bolster its leadership structure amid growing scrutiny over Elon Musk’s future.

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China
Tesla

China

China Continues to Reduce Its U.S. Bond Holdings as the UK Rises to Second Place

Data from the U.S. Treasury Department revealed that China reduced its holdings of U.S. Treasury securities in March,
falling behind the United Kingdom, which became the second-largest foreign holder of such bonds for the first time in over 20 years.

According to the figures, the UK’s holdings reached approximately $779.3 billion,
surpassing China’s $765.4 billion after the latter engaged in net sales of $27.6 billion in long-term bonds.
This move reflects China’s ongoing policy of minimizing exposure to U.S. debt amid growing geopolitical and economic tensions.

Despite the decline in China’s holdings, total foreign purchases of U.S. bonds in March saw a record surge for the second consecutive month,
rising by $233.1 billion to reach $9.05 trillion—signaling continued global appetite for U.S. debt instruments,
at least through the end of March.

This development preceded the market disruptions in April,
triggered by a new tariff campaign launched by U.S. President Donald Trump on April 2 under the name “Liberation Day.”
The initiative included harsh tariffs on U.S. trading partners, resulting in widespread sell-offs of the dollar, stocks, and Treasury bonds.

Meanwhile, holdings of U.S. Treasuries by Japan, Canada, and Belgium increased during the same period,
with Japan maintaining its position as the largest foreign holder.

Tesla

Tesla Appoints Jack Hartung to Its Board and Reconsiders Elon Musk’s Compensation

It announced on Friday the appointment of Jack Hartung, executive at Chipotle,
to its Board of Directors and Audit Committee starting June.
With this appointment, the number of Tesla board members will rise to nine,
in a move that reflects Tesla’s aim to enhance its leadership expertise amid a shifting regulatory and market landscape.

Hartung’s appointment comes at a critical time, as Tesla’s board faces increased scrutiny amid reports of internal discussions regarding the future of CEO Elon Musk. A special committee has also been formed to review Musk’s compensation package,
indicating a potential restructuring of his stock option awards.

Hartung brings a strong track record in financial and operational leadership, having previously served as President and Strategic Director at Chipotle.
His experience in managing finance and supply chains is seen as a valuable asset that aligns with Tesla’s ambitious expansion plans.

On the market front, investors responded positively to the news.
Tesla shares rose by 1.29%, or $4.42, closing at $347.24 on the Nasdaq—reflecting market confidence in strengthened corporate governance within the company.

Global Economy Amid Shifting Government Investments

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