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China's drawdown of US debt continues, narrowing lead over Japan

Beijing's holdings fell for third straight month ahead of Xi-Trump summit

The Treasury Department in Washington: China remains the top holder of U.S. debt, but Japan is close behind.   © Reuters

SHANGHAI -- China's holdings of U.S. Treasurys dropped for a third consecutive month amid a yearlong trade war with Washington, in a trend that could see Japan once again become the top foreign holder of American government debt.

Beijing's holdings fell to a two-year low of $1.110 trillion at the end of May, down $2.8 billion from April, according to data from the U.S. Department of the Treasury. The latest balance is more than $90 billion below a high marked in August 2017.

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