Money & Finance › Money flows around the world › Foreign holders of US Treasuries (TIC data): Japan, UK, China
China's shrinking Treasury pile: real selling or hidden in custody?
Peak ~$1.3T 2013; ~$0.63T 2026· Concept
Experts disagreeEconomists or investors genuinely disagree.
China's recorded US Treasury holdings fell from about $1.3 trillion in 2013 to about $633 billion in June 2026.
See it on the Money & Finance map →How it works
China built its pile by buying dollars to keep the yuan stable. Since 2013 its recorded holdings have halved, dropping it to third place behind Japan and the UK. One view: Beijing is diversifying into gold and other assets, wary of sanctions after Russia's reserves were frozen in 2022. The other: much is still there but hidden, held through custodians in Belgium and elsewhere, in Fannie Mae and Freddie Mac bonds, or via state banks, since total reserves have stayed near $3.2–3.3 trillion.
Why it matters
China was the largest or second-largest foreign creditor for years, so its choices affect Treasury demand and the dollar, and are read as strategic signals.
Facts, rules and data
Treasury TIC data, China's SAFE reserve reports, central-bank gold disclosures and analysis by economists such as Brad Setser of the Council on Foreign Relations.
Debates and risks
China does not publish its reserve composition, so how far it has truly cut its dollar exposure is unknown.
Connections (2)
▸China's shrinking Treasury pile: real selling or hidden in custody? is cited as evidence of De-dollarization and BRICS alternativesExperts disagree
The connection
Proponents note China's recorded Treasury holdings have halved since 2013 while its central bank bought gold, especially after Russia's reserves were frozen in 2022. Skeptics reply that total Chinese reserves are steady near $3.3 trillion, so dollar assets may simply have moved to custodians, agency bonds or state banks.
When and why
Debated since about 2016; China's central bank has bought gold in most months since November 2022.
How solid is the link?
TIC data show the decline and SAFE data show steady reserves; analysts like Brad Setser argue much is hidden, not sold.
Debates and risks
Without China publishing its reserve mix, neither side can prove its case.
▸China's shrinking Treasury pile: real selling or hidden in custody? grew from years of managing China's yuan (renminbi)Fact, law or data
The connection
From the early 2000s to 2014, China's central bank bought the dollars its exporters earned to keep the yuan from rising too fast, and invested many of them in Treasuries. Reserves peaked near $4 trillion in 2014. When money fled in 2015–16, it sold dollars to support the yuan.
When and why
Holdings peaked near $1.3 trillion in late 2013; China passed Japan as the top foreign holder in 2008.
How we know
SAFE reserve data, Treasury TIC data, and Treasury's currency reviews; Treasury labeled China a manipulator in August 2019, lifting it in January 2020.
Debates and risks
How much of the 2015–16 reserve drop came from selling Treasuries versus other assets is not fully known.