Financial circles are increasingly questioning the belief that China's massive holdings of U.S. Treasury bonds can destabilize the American financial system, as China significantly reduced its holdings in recent years.
In recent discussions within financial circles, there exists a prevalent myth that China holds such a vast amount of U.S. Treasury bonds that it could impact American financial stability if it chose to do so. However, recent data indicates a different reality. Historically, China did hold a significant portion of these assets, peaking in October 2013 with $1.3 trillion in Treasury bonds. Since that time, however, there has been a consistent reduction in these holdings, which now stand at approximately $683 billion, reflecting a dramatic decrease of about 47%.
