China Trims U.S. Treasury Holdings in January

Posted by Reading Time: < 1 minute

Mar. 18 – China and Japan, the world’s two largest owners of Treasury debt, cut their stakes in U.S. government holdings in January to US$889 billion and US$765.4 billion, respectively.

According to U.S. Treasury Department data released on Monday, this was the third straight month that China has reduced their holdings; off-loading US$5.8 billion in January. Comparatively, Japan cut their holdings by only US$300 million.

Despite these reductions by China and Japan, foreign holdings of U.S. government debt increased overall, albeit by a small amount. Purchases of American financial assets, including long-term equities, bonds, and notes totaled US$19.1 billion for the month compared with US$63.3 billion in December. It was the smallest increase in purchases since July 2009, according to the Treasury Department’s report.

1 thought on “China Trims U.S. Treasury Holdings in January

    Francis (Ottawa) says:

    I suspect you are right. Devaluing the dollar won’t increase American exports unless America makes things the Chinese want to buy.

    Charging less for what we sell and paying more for what we buy, on the face of it, will worsen the trade imbalance, unless we can make up the difference and more on changing volumes.

    But that won’t happen unless we buy less from them and they buy more from us. And that’s not necessarily the most likely outcome of a trade war.

    We should be doing market research on what the Chinese want to buy, just as they do market research on what we want to buy and then make and sell that stuff to us. Their outreach is incredible. For example, they all take Western names to make it easier for us to communicate with them. I don’t know of any Americans who take Chinese names when doing business in China, to make it easier for them to communicate with us.

Comments are closed.