⚡ What is happening?
China is systematically conducting one of the largest operations to rebalance its financial reserves in recent decades. According to the U.S. Department of the Treasury, China has been reducing its investments in U.S. government bonds for nine consecutive months. In November 2025, its portfolio of Treasury bonds reached $682.6 billion — the lowest level since 2008.

Alongside the sale of dollar assets, the People's Bank of China is increasing its gold reserves. By the end of December 2025, gold reserves reached 74.15 million troy ounces, increasing for the 14th consecutive month. In fact, gold has already surpassed the volume of U.S. bonds in China's reserves.

🔍 Why is this important?
This is not a short-term tactical move, but a well-thought-out long-term strategy, which experts call 'de-dollarization.'

• 1. Fear of U.S. debt. Chinese economists openly express concerns about the sustainability of the U.S. debt pyramid. Professor Shao Yu from Fudan University compared the accumulation of U.S. debt to a 'Ponzi scheme,' stating that 'China no longer wants to participate in this game.'
• 2. Geopolitical independence. Against the backdrop of increasing trade and technological confrontation with the U.S., gold is seen as a reliable asset not subject to sanctions or political pressure.
• 3. Diversification and strengthening of the yuan. By increasing the share of gold, China enhances the stability of its reserves and lays the groundwork for the future role of the yuan in the global financial system. There are even analytical forecasts about a possible launch of a 'golden yuan' for international trade in the future.

💎 Conclusion for the investor
China's actions are a clear signal to global markets. They reflect the growing distrust of major economies towards the dollar as the sole reserve currency and a shift towards real, 'eternal' assets.

While some countries, such as Japan and the UK, are increasing their investments in U.S. debt, others—including China and India—are making a strategic bet on gold. This is not only a matter of financial caution but also part of a broader reshaping of the global financial landscape.

Markets are reacting: Sustained demand from central banks is one of the key drivers keeping gold prices at historically high levels and pushing the world's leading banks to forecast further growth in 2026.

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