- Since Jan. 2022, China has reduced its U.S. treasuries held outright, from $1.03 trillion to $859 billion in Jan. 2023, a 16.8 percent decrease, according to the latest data compiled by the U.S. Treasury of foreign holders of U.S. securities.
- This comes atop a further decrease from its peak in Nov. 2013 at more than $1.3 trillion, bringing the total decrease to 34.7 percent the past decade.
But does it matter?
..With $859 billion of treasuries, China owns just 3.5 percent of the $24.6 trillion of the publicly traded national debt (with the overall debt now north of $31.4 trillion)...
..With $859 billion of treasuries, China owns just 3.5 percent of the $24.6 trillion of the publicly traded national debt (with the overall debt now north of $31.4 trillion)...
- ...a complete divestiture of treasuries by China after sanctions were levied on Russia following its invasion of Ukraine in 2022 could indeed be a prelude to war, indicating Beijing wanted to get back as much of its money as possible to fuel a move, say, on Taiwan — the Chinese navy is currently encircling Taiwan — since one of the first things the U.S. would do is simply end all payments to Chinese holders of the debt...
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