China cuts US Treasury stockpiles to the lowest level since 2009
South China Morning PostFriday, July 18, 2025 at 8:00:15 AM
China has been quietly reducing its stash of U.S. Treasury bonds for three months straight, hitting the lowest level since the 2009 financial crisis. In May, Beijing’s holdings dipped slightly to $756.3 billion—down from $757.2 billion in April—amid ongoing trade friction with the U.S. and worries about American fiscal policies. This isn’t just a blip; China’s been slipping down the rankings of foreign creditors, now sitting in third place behind Japan and another major holder.
Editor’s Note: When China sells off U.S. debt, it’s not just a financial move—it’s a geopolitical signal. This slow retreat reflects deeper tensions, from trade wars to concerns about America’s spending habits. If China keeps pulling back, it could ripple through global markets, making borrowing more expensive for the U.S. and shaking confidence in the dollar’s dominance. It’s a quiet but telling shift in how the world’s two biggest economies are maneuvering against each other.
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