China's Treasury Holdings Fall to Third Place

China keeps cutting back on US Treasury bonds. By mid-2025, they've slipped to third place globally 🔍. Kind of surprising how fast this happened.

Japan leads now. They're holding over $1.13 trillion. The UK jumped to second place with roughly $779.3 billion. China? Down to $731 billion in July—levels we haven't seen since 2008 🧮.

This marks a big shift. Remember 2019? China was the top holder back then 📉.

The decline started during those trade fights. It's gotten worse lately. In July alone, they dumped another $25.7 billion of US debt. Not subtle at all 🚀.

China's pulling back, yet others are diving in. Foreign ownership of US Treasuries hit $9.16 trillion—a record high. Japan, the UK, Canada, Belgium—all buying more. Even the Cayman Islands (hedge fund central) is loading up 📈.

Beijing seems to have a plan. They're going shorter-term. More liquid assets. Gold purchases too—lots since late 2023. Smart move. This gives them options. Need dollars quickly? No problem. Want less dollar exposure? Just let the short-term bonds mature 🔥.

It seems Beijing wants distance from the dollar. Geopolitical tensions probably factor in. Concerns about US finances too. All that gold buying has helped push prices up 🌕.

Some think China's just adjusting timing, not abandoning dollar assets entirely. But the trend looks pretty clear. They're making a strategic pivot. This balancing act will likely continue. The global financial landscape is tricky these days 🌐.