Today: Tuesday, 9 August 2022 year

Chinese investments in US government debt fell to the lowest level since 2010

Chinese investments in US government debt fell to the lowest level since 2010

The US Treasury Department said China cut its holdings in US government bonds to $981 billion in May. Observers say Chinese holdings in US government debt fell below $1 trillion for the first time since 2010. Compared to May last year, China has reduced the volume of US government bonds by 9%, or $100 billion.

Despite the reduction of China’s investments in US government debt, the total amount of US government bonds held by foreign countries increased by 4% compared to May last year – from $7.14 trillion to $7.42 trillion. From April to May of this year, a slight decrease was recorded – by 0.4%. If China has reduced its investments in US government bonds by $23 billion since April, then countries such as India, Switzerland and the UK have increased their investments by $4 billion, to $204 billion; by $23 billion, up to $294 billion; and by $22 billion, to $634 billion, respectively. Japan remains the largest holder of US government debt at $1.212 trillion. China continues to be in second place with $981 billion, while the UK is in third with $634 billion.