China’s US Treasury Holdings Fall to 17-Year Low
Data from Chinese financial firm Wind indicated that October’s figure was the lowest since November 2008, representing a decline of more than 47% compared to the peak of roughly $1.32 trillion in November 2013.
The downward trend in China’s Treasury holdings began during US President Donald Trump’s first term, with China slipping to third place among foreign holders in March, behind Japan and the UK.
This year, the reduction has continued, driven by concerns over the sustainability of US debt. These worries have been heightened by the summer’s “One Big Beautiful Bill” and debates over the independence of the Federal Reserve as the White House advocates for lower interest rates.
In November, Beijing sustained its gold-buying streak for the 13th consecutive month while further cutting back on Treasury purchases. Official statistics show that reserves grew by 30,000 ounces, bringing the total to 74.12 million ounces, valued at $310.6 billion.
Despite China’s decline, overall foreign holdings of US Treasury bonds only slipped slightly from $9.248 trillion in September to $9.243 trillion in October, remaining above $9 trillion for the eighth month in a row.
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