China Offloads $74 Billion in U.S. Treasuries

As the economic relations between China and the United States continue to draw investor interest, the East Asian nation has consistently offloaded substantial amounts of U.S. Treasuries and agency debt, reaching a staggering $74 billion in the last seven months alone.

Specifically, China dumped $21 billion in U.S. Treasuries and agency bonds in late 2023. The first quarter of 2024 saw a record-breaking $53.3 billion in sales, bringing the total amount to over $74 billion in the past seven months. Bloomberg shared these figures.

Indeed, China's recent moves, traditionally a major holder of U.S. debt, suggest that the country has changed its global investment patterns and diversification practices.

This shift, which is possibly part of reassessing its holdings amid geopolitical tensions, introduces a new level of unpredictability in the global financial markets, as Finbold reported on May 16.

Bloomberg reported in October 2023 that Chinese investors offhand offloaded most U.S. bonds and stocks in four years in August of that year, with the bulk of their $21.2 billion sales belonging to Treasuries and U.S. equities.

In April 2024, Finbold reported on China's gold reserves surging by over 225 tonnes in 2023 alone. The nation consistently grew its holdings of the precious metal for 17 months, and economic tensions against the U.S. continued to escalate.

Notably, U.S. President Joe Biden has recently declared sweeping tariff hikes on various Chinese imports.

This move, along with the broader strategy to battle what his administration sees as the East Asian country's unfair trade practices, could potentially reshape the global economic landscape.

His rival in the presidential race, Donald Trump, has announced similar measures if elected.