China reduced its exposure to U.S. Treasury securities to the lowest level in more than 16 years, continuing the decade-long trend of trimming holdings of American debt.
According to new data released by the Treasury Department, Chinese stockpiles declined by about $8 billion, to $757.2 billion in April, from $765.4 billion in March. This is also down about $13 billion from a year earlier.
After years of being the world’s largest holder of U.S. debt, China now sits in third place behind Japan ($1.134 trillion) and the United Kingdom ($807 billion).
However, while Treasury data indicate a long-term downward trend in China’s U.S. Treasury holdings, strategists at JPMorgan Chase argue that the numbers are misleading….