China’s U.S. Treasury Holdings Fall to Lowest Share Since 2001 Amid Gold Accumulation

TLDR:

• China’s U.S. Treasury holdings fell to $682.6B, down from a $1.3T peak in 2013.
• China’s share of foreign Treasury holdings dropped to 7.3%, the lowest since 2001.
• Gold reserves reached 2,308 tonnes after 15 straight months of central bank buying.
• Total foreign U.S. Treasury holdings hit a record $9.36T despite China’s reduction.

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China’s holdings of U.S. Treasuries declined to their lowest share in foreign reserves since 2001. As of November 2025, Beijing held $682.6 billion in U.S. government debt, while its gold reserves climbed to record levels.

Treasury Holdings Decline to Multi-Decade Low Share

Data shows China’s Treasury holdings dropped to $682.6 billion in November 2025. This marks a sharp fall from its 2013 peak of over $1.3 trillion.

China now accounts for 7.3% of total foreign-held U.S. Treasuries. That share is the lowest recorded since 2001. Despite the decline, overall foreign holdings reached a record $9.36 trillion. Japan and the United Kingdom remain the largest foreign holders.

The reduction has drawn attention across financial markets. However, bond markets have remained stable during the adjustment period. The figures indicate a gradual rebalancing rather than an abrupt market disruption.

On X, user Wimar X claimed that China “dumped $638 billion” in U.S. Treasuries. The post also stated that current holdings are the lowest since 2008. The tweet further suggested China is “exiting the system.”

Official data confirms the decline in holdings. However, total foreign demand for Treasuries remains strong, led by other major economies.

Gold Reserves Rise for 15 Consecutive Months

At the same time, the People’s Bank of China continued adding gold to its reserves. January 2026 marked the fifteenth straight month of gold purchases.

China’s gold holdings reached 2,308 tonnes, valued at about $370 billion. Gold now represents roughly 5% of the country’s $3.3 trillion in total reserves. This is the highest recorded level for China’s gold stockpile.

Some market observers view the shift as a move toward hard assets. Others describe it as standard reserve diversification. The increase in gold has occurred alongside the steady reduction in Treasury exposure.

Even so, China remains one of the largest holders of U.S. government debt globally. The adjustment appears gradual rather than sudden.

The combination of lower Treasury holdings and higher gold reserves reflects changing reserve allocations. Meanwhile, global Treasury markets continue to operate without major volatility.

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