China’s U.S. Treasury holdings fall below half their 2013 peak

China’s reported U.S. Treasury holdings have fallen to about $618 billion, changing who absorbs U.S. government debt as Beijing cuts its dollar reserves. That is less than half the more than $1.3 trillion China held in 2013 and the lowest level since August 2008.

The reduction has played out over years alongside higher gold holdings, so it is not a one-month exit. Foreign governments still held $9.25 trillion of Treasuries in July, even after a $50.4 billion monthly drop, while private foreign investors became the larger holder group and India bought a record $15.2 billion.