China saw its holdings of US debt drop to their lowest level in over 12 years in 2022, as well as posted a run of three consecutive monthly declines according to figures just released by the US Treasury.
Data from the Treasury International Capital (TIC) indicates that China’s holdings of US debt fell each month during the period from September to November. The string of declines arrived after China’s US debt holdings fell below USD$1 trillion in April – the first time that it’s sunk beneath this threshold since May 2010.
At the start of 2022 Japan and China were the biggest foreign creditors of the US, with Treasury holdings of $1.3031 trillion and $1.0601 trillion respectively. As of the end of November 2022, these holdings had notched declines of $220.09 billion and $190.1 billion respectively.