tLDR:
- China’s US Treasury holdings fell to $682.6 billion, from a peak of $1.3 trillion in 2013.
- China’s share of foreign Treasury holdings fell to 7.3%, the lowest level since 2001.
- Gold reserves reached 2,308 tons after 15 consecutive months of purchases by central banks.
- The US Treasury’s total foreign holdings hit a record $9.36 trillion despite China’s drawdown.
China’s holdings of US Treasuries declined to their lowest share of foreign reserves since 2001. In November 2025, Beijing held $682.6 billion in US government debt, while its gold reserves rose to record levels.
Treasury Holdings Fall to Lowest Level in Several Decades
Data shows that China’s Treasury holdings fell to $682.6 billion in November 2025. This marks a sharp drop from its 2013 peak of more than $1.3 trillion.
China now accounts for 7.3% of total US Treasuries held abroad. That ratio is the lowest recorded since 2001. Despite the decline, overall foreign holdings hit a record $9.36 trillion. Japan and the United Kingdom remain the largest foreign holders.
The reduction has attracted attention in all financial markets. However, bond markets have remained stable during the adjustment period. The figures indicate a gradual rebalancing rather than an abrupt market disruption.
In X, user Wimar XcHe lamented that China “got rid of $638 billion” in US Treasury bonds. The post also claimed that current holdings are the lowest since 2008. The tweet further suggested that China is “exiting the system.”
Official data confirms the drop in holdings. However, total external demand for Treasuries remains strong, led by other major economies.
Gold reserves increase for 15 consecutive months
At the same time, the People Bank of China He continued to add gold to his reserves. January 2026 marked the 15th consecutive month of gold purchases.
China’s gold holdings reached 2,308 tons, valued at about $370 billion. Gold now represents about 5% of the country’s $3.3 trillion in total reserves. This is the highest level on record for China’s gold reserves.
Some market observers see the shift as a move toward hard assets. Others describe it as standard reserve diversification. Gold’s rise has come alongside the steady reduction in exposure to Treasuries.
Even so, China remains one of the largest holders of US public debt globally. The adjustment seems more gradual than sudden.
The combination of lower Treasury holdings and higher gold reserves reflects changes in reserve allocations. Meanwhile, global Treasury bond markets continue to operate without much volatility.
