Geopolitical Strains Push China’s US Treasury Holdings to Historic Low
China’s U.S. Treasury holdings have dropped to their lowest level since 2009, falling by $57 billion to $759 billion.
This decline reflects China’s strategy to reduce exposure to the U.S. financial system by shifting holdings to alternative accounts and diversifying foreign reserves. Analysts suggest China views holding large amounts of U.S. debt as a geopolitical risk. Some of its holdings may have moved to depositories like Euroclear and Clearstream.
The trend aligns with broader global efforts to reduce reliance on the U.S. dollar, though market fluctuations may also play a role.
Clever Robot News Desk 22th February 2025
