China's investments in US government bonds have dropped to their lowest level since 2009! They now stand at $759 billion. This decline is no coincidence! There is plenty that Beijing does not like about US Treasuries.
According to data from the US Treasury Department, China reduced its holdings of US debt by $9.6 billion in December 2024, bringing the total to $759 billion, the lowest level since 2009. However, China remains the second-largest holder of US bonds. The top spot goes to Japan, with $1.06 trillion in investments.
It is worth noting that China’s total does not include bonds held on accounts in other countries. Hong Kong’s investments in US Treasuries are listed separately and amount to $255 billion, down $11 billion in December 2024.
The United Kingdom ranks third among US debt holders, also at $759 billion, after cutting its investments by $9 billion. Luxembourg and the Cayman Islands take fourth and fifth place, respectively.
According to analysts, China lowered its US debt holdings by $57.3 billion over the past year. Meanwhile, the total foreign investment in US Treasuries rose significantly by $573.7 billion, reaching $8.512 trillion.
