China cuts US Treasury holdings to lowest level since 2008
Gradual unwinding comes as rift deepens between world’s two largest economies
Source: Financial Times
―
DW NOTE
China's Treasury position has fallen from $859 billion in 2023 to roughly $700 billion now — not panic, just arithmetic. When the 10-year yield sits at 5% and your currency is under sustained pressure, holding dollar reserves becomes expensive carry. Beijing isn't dumping Treasuries to make a geopolitical point; it's burning them to defend the renminbi while Washington runs a $1.9 trillion deficit and the Fed hikes into a supply shock.