ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

China cuts U.S. debt holdings 9% in suspected shift to tax havens

Beijing fears possible asset freeze after sanctions on Russian central bank

China's Treasury bond holdings dropped by $100 billion in the first half of 2022.   © Reuters

BEIJING -- China is reducing its holdings of U.S. government debt, with the balance declining 9% through July from the end of last year as sanctions against Russia drive home the risks of relying on the dollar.

China's Treasury bond holdings came to $970 billion at the end of July, U.S. Treasury Department data shows -- a small increase from June, preceded by seven straight months of declines. While the total has been trending lower since 2018 amid the trade war between Washington and Beijing, it sank by $100 billion, or nearly 10%, in the first half of 2022 alone.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more