Part 1/8:
The Decline of China's Investment in US Treasuries and Its Global Implications
China's longstanding position as a major holder of U.S. government debt is gradually changing, raising questions about the global economic landscape. Once the largest foreign holder of U.S. Treasury securities, China has seen its holdings decline, with Japan recently surpassing it as the leading foreign investor in U.S. debt. As of early 2024, Japan holds over $1.1 trillion in U.S. government debt compared to China’s roughly $760 billion. This shift prompts a critical inquiry: what might happen if China continues to divest from U.S. Treasuries?