China Cuts U.S. Treasury Holdings to 17-Year Low, Diversifies Reserves

China reduced its U.S. Treasury holdings to $682.6 billion in November 2025, the lowest level since 2008, as part of a broader strategy to diversify its foreign exchange reserves. This shift includes increased allocations to gold, non-U.S. currencies, and overseas equity investments amid strained U.S.-China relations. Meanwhile, foreign ownership of U.S. debt reached record highs, with Japan and the UK increasing their holdings. China maintains the world's largest forex reserves, totaling $3.36 trillion at the end of 2025.