China is accelerating its divestment from US assets, with capital outflows surging to their highest level since 2016 in April. Chinese banks sold $36.7 billion worth of foreign exchange to clients last month, the most since 2016. Additionally, Beijing has offloaded $53.3 billion in US securities, according to Treasury Department data. This move is part of a broader strategy to reduce reliance on the US dollar in international trade, driven by concerns over unsustainable debt, economic sanctions, and the potential for a US banking crisis. The shift has put the US dollar under a geopolitical spotlight, as China's actions are seen as part of its effort to de-risk trade ties and deepen connections with emerging markets, reducing dependency on the US and EU. A Fed governor highlighted the de-dollarization debate, noting the changing role of the US economy in global finance.