China Cuts US Treasury Holdings to 17-Year Low, Diversifies Reserves Towards Gold

China reduced its US Treasury holdings to USD 682.6 billion in November 2025, the lowest level since 2008, as part of a strategy to diversify its foreign exchange reserves towards gold, non-US currencies, and overseas equity investments amid strained US-China relations. Meanwhile, foreign ownership of US debt reached record highs, with Japan and the UK increasing their holdings. Experts attribute China's move to portfolio optimization and concerns over US debt sustainability, signaling a continued shift in its reserve management.