Liabooks Home|PRISM News
Descending chart of China's US debt holdings with a financial background.
PoliticsAI Analysis

China Trims US Treasury Holdings to 2008 Low Amid Trump Risks

1 min readSource

China's US Treasury holdings fell to $682.6 billion in November, the lowest level since 2008. Beijing is diverging from global trends due to concerns over Trump and the Fed.

While the rest of the world is stocking up on American debt, China's going the other way. Beijing's holdings of US Treasuries just hit their lowest level since 2008, diverging sharply from a global trend that saw total foreign ownership reach a record high.

China US Treasury holdings 2008: A Strategic Retreat

According to official data, China’s stockpile of US debt dropped to $682.6 billion in November, down from $688.7 billion in October. This persistent trimming comes even as other major economies increased their exposure to the safety of the dollar, signaling that Beijing is prioritizing risk reduction over yield.

The Trump Factor and Fed Independence

Analysts suggest the prospect of a Donald Trump presidency has spooked Beijing. Concerns over the potential politicization of the Federal Reserve under a second Trump administration have deepened fears regarding the stability and neutrality of American financial assets. With more cuts expected, the geopolitical divide in global finance is becoming more visible.

This content is AI-generated based on source articles. While we strive for accuracy, errors may occur. We recommend verifying with the original source.

Related Articles