As the trade war between the two of the world’s largest economies – China and the United States – continues, the East Asian nation has offloaded billions in U.S. treasuries and agency bonds, with the divestment figure already reaching $50 billion in the first quarter of 2024.
Specifically, China got rid of $48.9 billion of its US treasuries and agency bonds in Q1 2024, cutting its holdings from $816.3 billion in December 2023 to $767.4 billion in March 2024, according to the US Treasury Department data retrieved by Finbold on June 3.
Indeed, China has been steadily reducing its supply of US treasuries and agency bonds this year, which in January 2024 amounted to $797.7 billion, and in February 2024, it dropped to the figure of $775 billion, and a similar trend is also noticeable in the activities of Hong Kong.
As a reminder,…
