During oral consultations with the largest banks, Chinese officials emphasized the need to diversify risks, Bloomberg notes, citing sources familiar with the situation. Regulators are concerned about the risks of asset concentration and high market volatility.
The decision does not affect China’s state reserves in U.S. bonds. Sources say that the move is dictated solely by market considerations, not geopolitics or loss of confidence in the creditworthiness of the United States.
The news caused a slight decrease in quotations of U.S. government bonds and growth of their yields in Asian trading. The dollar weakened slightly against major currencies.
China, once the largest creditor of the U.S., is consistently reducing its investments in U.S. government debt. Since the peak in 2013, China’s portfolio has almost halved, reaching $683 billion in November 2025 (the minimum since 2008). China now ranks third among bondholders, behind Japan and the UK.
Experts note that the real decline may be less, as Beijing probably transferred some assets to accounts in Belgium, whose investments in U.S. government debt have grown 4 times since 2017.
The Chinese authorities’ concerns echo the sentiment of global investors, who are increasingly questioning Washington’s fiscal discipline amid President Donald Trump’s policies and statements about the comfort of a weak dollar.
