China Cuts U.S. Treasury Holdings by 10% Since Trump Took Office… Lowest in 17 Years

As of November last year, China’s holdings of U.S. Treasuries fell to their lowest level in about 17 years since September 2008.

According to figures released by the U.S. Treasury Department on the 17th (local time), China’s Treasury holdings totaled $682.6 billion (about KRW 1,007 trillion) as of November last year, down $6.1 billion from the previous month. This is the lowest level since September 2008 ($618.2 billion).

Since late January last year, when U.S. President Donald Trump took office ($760.8 billion), China’s Treasury holdings have declined by about 10.2%.

China has steadily reduced its Treasury holdings in recent years, and in March last year it slipped to third place, behind the United Kingdom.

Some observers say concerns over the U.S. debt problem, worries about the independence of the U.S. central bank (the Fed), and weakening confidence in dollar-denominated assets are influencing China’s asset diversification.

China is increasing its gold holdings instead of U.S. Treasuries. China’s gold holdings have risen for 14 consecutive months through last month.

As of the end of last month, China’s gold holdings stood at 74.15 million ounces, up 30,000 ounces from the previous month.

Noh Jeong-dong, Hankyung.com reporter dong2@hankyung.com