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Economy

China regains leverage on US as top debtholder

Freed by calmer yuan, Beijing resumes heavier purchases of Treasurys

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The People's Bank of China has returned to heavy Treasury investments after having sold dollars to check the yuan's drop.   © Kyodo

BEIJING -- China has regained a bargaining chip with Washington by resuming the title of largest foreign holder of U.S. Treasurys, taking advantage of a calmer currency to buy more of the bonds amid relations strained by North Korea and a trade imbalance.

China increased its holdings of the debt by $44.3 billion in June to $1.14 trillion, while Japan shed $20.5 billion to stand second with $1.09 trillion, ceding a lead it had maintained since October, U.S. Treasury Department data showed Tuesday.

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