China · U.S. Treasury · Canada · Russia · Ukraine · Fortune Technology
Official data show China is dumping more U.S. Treasury debt. But it may actually be a stealth buyer
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China was once the top holder of U.S. Treasuries but has been shedding its massive stockpile for years, fueling fears of de-dollarization, but official data may not fully capture Beijing’s actual portfolio.
Key facts
- The decline began in earnest around 2021, but as recently as April 2022, China still held $1 trillion in Treasury securities
- Canada’s holdings soared to $465 billion in August from $169 billion in the same month five years ago
- Similarly, Belgium’s stockpile shot up to $490.5 billion from $228 billion over the same span
- So despite the friction with the U.S. and other trade partners, China posted a $1.2 trillion trade surplus in 2025—the largest in recorded history—growing three times faster than global goods trade
Summary
China was once the top holder of U.S. The decline began in earnest around 2021, but as recently as April 2022, China still held $1 trillion in Treasury securities. But the data is collected primarily from U.S.-based custodians and broker-dealers, according to the Treasury Department, which adds that U.S. securities held in overseas custody accounts may not be attributed to the actual owners. As a result, China watchers have long been skeptical of a wholesale dumping of U.S. assets, pointing to suspicious jumps in Treasury holdings elsewhere that coincide with the steep Chinese drop. Canada’s holdings soared to $465 billion in August from $169 billion in the same month five years ago.