China reduced investments in US government bonds to a minimum since 2008
In June 2026, China reduced its investments in US government bonds to $633.4 billion — the lowest level in almost 18 years. In just one month, the Chinese portfolio of American government debt decreased by $25.9 billion, according to data from the US Treasury Department.
At the end of May, China held $659.3 billion in US Treasury securities. Thus, in June, the indicator decreased by approximately 3.9%. Compared to June 2025, when the amount was $731.4 billion, investments decreased by $98 billion, or approximately 13.4%.
According to the South China Morning Post, the current amount is the lowest since September 2008, when China's portfolio of US Treasury securities was about $618.2 billion. The publication links the further reduction to the long-term diversification of Chinese reserves amid geopolitical tensions and uncertainty regarding the policy of the US Federal Reserve.
China remains the third largest creditor of the US
Despite years of portfolio reduction, China remains the third largest foreign holder of US government bonds.
In June, Japan was in first place with a portfolio of $1.117 trillion, and the United Kingdom was second with $939.9 billion. Japan's investments also decreased over the month — from $1.143 trillion.
The total volume of US Treasury securities held by foreign investors in June was about $9.299 trillion, compared to $9.371 trillion in May. That means the total foreign portfolio decreased by approximately $72 billion over the month.
The US Treasury Department, however, warns against interpreting statistics for individual countries too directly. The data is formed mainly based on information from American depositories and brokers, so securities that the actual owner holds through accounts in third countries may be attributed to a jurisdiction other than where he is located.
Therefore, official statistics do not necessarily show the full volume of US bonds actually held by Chinese investors. At the same time, the long-term trend remains noticeable: mainland China's direct investments in US Treasuries are gradually decreasing.
According to materials from: US Treasury Department, South China Morning Post
