While begging for money, they are crazily selling off! China responds to Trump with a reduction in holdings worth hundreds of billions! đ„đ„đ„
The latest data from the U.S. Treasury reveals shocking news: China's holdings of U.S. Treasury bonds have fallen to $682.6 billion, nearly 'halved' from a decade ago! Especially since 2025, the highest monthly reduction has exceeded $18 billion, with the selling momentum showing no signs of abating. This is not a random operation, but a strategic shift that has been ongoing for several yearsâbetween 2022 and 2024, China has cumulatively reduced its holdings by over $280 billion!
Trump has recently made multiple calls for China to 'send money' to support U.S. Treasury bonds, and before his words even settled, he was met with this strong counteraction. The global market understands: China is accelerating its efforts to reduce dependence on U.S. Treasury bonds and promoting diversification of foreign exchange reserves.
Why this decisive reduction? The reasons behind it are complex yet clear: the U.S. fiscal deficit continues to soar, the credibility of the dollar is under persistent pressure, and the international rating agency Moody's has long since downgraded the rating of U.S. Treasury bonds. Additionally, the U.S. frequently freezing foreign assets as a form of 'financial weaponization' has heightened countries' awareness of the risks associated with U.S. Treasury bonds.
China's reduction is by no means an impulsive decision, but rather a strategic choice based on long-term financial security. The structure of foreign exchange reserves is being optimized, with the proportion of gold and other non-dollar assets gradually increasing đ. While asking others to increase their holdings, the U.S. is squandering its own credibilityâthe double standards of the U.S. are increasingly going unaccepted.
Have you understood the signals behind this billion-level 'reduction action'? Share your thoughts in the comments below đ