China’s holdings of US government debt have dropped beneath the USD$1 trillion threshold for the first time since May 2010, according to the latest data from the US Treasury Department.
US government debt held by China fell to $980.8 billion in June, according to figures released by the US Treasury Department on Monday.
The figure marks a decline of $23 billion compared to April, as well as a drop of $100 billion – or 9%, compared to the same month the year previously.
The decline makes Japan the largest foreign holder of US debt, with a total of $1.2 trillion in securities.
A recent string of interest rates hikes by US Federal Reserve have had the effect of diminishing the value of US Treasuries, while China is also seeking to diversify its forex holdings due to concerns over heightened tensions with Washington.
