China reduced its holdings of US assets to about $1.56 trillion by late 2025, a 14-year low, according to Data shows. Excluding Treasuries held in Belgium — widely seen as custodial accounts — the total falls to roughly $1.16 trillion, the lowest level since 2008 (Ed. note: Belgium holdings are often treated as proxy Chinese accounts).
In early February 2026, regulators including the People’s Bank of China (PBOC) and the National Financial Regulatory Administration told domestic lenders to curb exposure to US Treasuries. Those steps likely contributed to the recent sell-off and declining holdings.
The pullback covers Treasuries, stocks, agency securities, corporate bonds, and other instruments. “China’s ownership of US assets is declining:” a related market note reflected this trend and public attention.
China increased official gold purchases through 2025, adding about 27 tonnes that year. Official reserves now stand near 2,306 tonnes, according to reported totals.
The timing coincided with strained bilateral ties and tariff actions by the United States. If China continues selling Treasuries, it could push up US borrowing costs, analysts warn.
China also promotes broader use of the yuan and participates in a longer-running de-dollarization movement. The policy mix shows both portfolio shifts and strategic currency diversification.
