China Quietly Dumps US Treasuries to Lowest Level Since 2008
China has slashed its holdings of US Treasury securities to around 650 billion dollars, the lowest since 2008. That’s down sharply from a peak of 1.3 trillion dollars in 2011, with the pace of selling accelerating through 2024 and 2025.
While President Trump engages Xi Jinping on trade deals, Boeing purchases, and Iran policy, Beijing is methodically reducing exposure to American debt. This move supports the weakening yuan, pads gold reserves, and hedges against escalating tensions with the United States.
Foreign holdings of US debt have hit record highs near 9.5 trillion dollars overall, but America’s top strategic rival is heading for the exits. Washington should take note: reliance on fickle foreign buyers carries real risks as debt piles up and adversaries diversify away from the dollar.