China reduces US Treasury holdings to lowest level in eighteen years

China sold more of its US government bonds in July 2026, cutting its total to $618 billion. This is the lowest figure since August 2008, about 18 years ago. At its peak in 2013, China held around $1.3 trillion in these bonds. Since then, it has been slowly selling them off. Overall, foreign countries also reduced their holdings in July, from $9.3 trillion to $9.25 trillion. Japan stayed the biggest foreign holder, with about $1.1 trillion. The UK went against the trend and increased its holdings to nearly $998 billion. Analysts say China's real exposure to US debt may be higher than official numbers show, because some purchases go through other financial centres.