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For First Time in Quarter Century, China No Longer Second-Largest Holder of US Treasury Debt

US Treasury BondsUS Treasury Bonds - Sputnik International, 1920, 17.05.2025

Japan’s Treasury holdings remain the world’s largest, currently standing at $1.13trn. Japan warned in early May that it could use its holdings as a trump card in trade talks with Trump.China and the UK have flipped places in the ranking of top foreign holders of US Treasuries, with the Asian nation’s holdings shrinking from $784bn to $765bn from February and March, while Britain’s grew from $749bn to $779bn during the same period.

Britain’s Treasury holdings haven’t been higher than China’s since October 2000, when the People’s Republic’s economy was far smaller (3.3% vs 19.6%), and the UK’s larger (3.3% vs 2%), as a percentage of global GDP.

“This is a warning to the US,” Natixis Asia-Pacific chief economist Alicia Garcia-Herrero told UK business media, pointing out that China has been slowly offloading its US Treasury assets for years after hitting a peak of over $1.3tn in 2011.Russia sold off virtually all of its US Treasuries in 2018 amid US readiness to use the dollar as a weapon, with current holdings of about $25mln down from a historic high of $176.3bn in October 2010.A U.S. flag waves outside the New York Stock Exchange, Monday, Jan. 24, 2022, in New York. Stocks are drifting between small gains and losses in the early going on Wall Street Tuesday, May 3, 2022 as investors await Wednesday's decision by the Federal Reserve on interest rates. The Fed is expected to raise its benchmark rate by twice the usual amount this week as it steps up its fight against inflation, which is at a four-decade high. - Sputnik International, 1920, 17.05.2025EconomyMoody’s Downgrades US Credit RatingYesterday, 03:59 GMT

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