China Dumps Hundreds of Billions in U.S. Treasuries, Hits 15-Year Low While Stockpiling Gold
China has slashed its holdings of U.S. Treasury securities to $694 billion as of January 2026. That marks a drop of roughly $623 billion from its peak of over $1.3 trillion in 2013 and the lowest level in more than 15 years.
Official U.S. Treasury data shows the steady multi-year decline, with only modest monthly fluctuations lately. Beijing continues to reduce exposure to American debt even as other major holders like Japan and the UK have increased theirs.
At the same time, China’s central bank has bought gold for 17 straight months through early 2026. Its official gold reserves now approach $343 billion in value, part of a clear push toward hard assets over paper claims on U.S. debt.
This shift reflects Beijing’s long-running effort to diversify its foreign reserves away from the dollar system. While the sales have been gradual and the U.S. Treasury market remains deep and liquid, the trend underscores growing caution among America’s largest former creditor.
The dollar’s dominance is not in immediate danger, but America’s reliance on foreign buyers for its debt is quietly changing.
Sources:
U.S. Department of the Treasury (TIC data)
Trading Economics
Bloomberg
Atlantic Council