China's U.S. Treasury Holdings Hit 18-Year Low: Global Financial Landscape Shifts as America's Debt Costs Rise

China's holdings of U.S. Treasury debt have fallen to their lowest level in nearly 18 years, dropping from a peak near $1.3 trillion in the early 2010s to around $618 billion currently. The accelerated pace of reduction since 2022 signals a strategic shift away from over-reliance on U.S. assets. This weakening foreign demand is contributing to rising U.S. bond yields, increasing borrowing costs for the American government.

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