China Lowers US Bond Holdings To Historic Levels
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GOLD
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China has just sent a signal that could impact the global financial balance. By massively liquidating its US Treasury bonds while strengthening its gold reserves, Beijing is undertaking a strategic repositioning with potentially profound implications. Behind these figures, a dynamic is emerging that questions the dominance of the dollar and is already capturing the attention of markets, including the crypto market.
In brief
- China has liquidated 623 billion dollars of US Treasury bonds, reducing its reserves to their lowest level since 2008.
- This movement marks a major strategic repositioning in the management of its financial reserves.
- Meanwhile, Beijing has accumulated gold for 17 consecutive months, reaching a record of 343 billion dollars.
- This dual dynamic reflects a reorientation toward tangible assets, less dependent on the dollar-dominated financial system.
China drastically reduces its exposure to the United States
While the BRICS tighten their grip on gold, China has just liquidated 623 billion dollars of US Treasury bonds. This announcement comes with a historically low level : “China now holds only 694 billion dollars, its lowest level since 2008”.
The key data reported are as follows :
- Total sale: 623 billion dollars of Treasuries ;
- Current stock: 694 billion dollars ;
- A historical low point: the lowest level since 2008.
This repositioning marks a clear break with its previous trajectory. For decades, US bonds have been a pillar of Chinese reserves. Their reduction to an unprecedented level since the global financial crisis reflects a significant shift in orientation, without any official justification being specified.
Gold establishes itself as a new strategic axis
Alongside this disengagement, another movement draws attention. China’s gold reserves have increased for 17 consecutive months, reaching 343 billion dollars, a new record. This continuous accumulation over more than a year contrasts with the sale of dollar-denominated assets and reveals a conscious choice in favor of gold.
This progression over 17 consecutive months reflects a strategy of strengthening tangible reserves. Gold, historically seen as a safe haven, seems to be regaining a central place in the allocation of Chinese reserves. This shift fits into a different logic from that of sovereign bonds, favoring an asset independent of foreign monetary policies.
The BRICS are gradually establishing themselves as an alternative hub, strengthening their economic and monetary influence in a context of global financial balance reconfiguration.
Such a choice could mark a lasting turning point in monetary balances. As major powers adjust their reserves, dedollarization is already accelerating after the Rio summit, opening a new phase of uncertainty and recomposition for global markets.
