China’s Treasury holdings have fallen below those of the UK for the first time since 2000, indicating a shift in Beijing’s approach to foreign reserves. As of March, China held $765 billion in Treasuries, down from $784 billion, while the UK’s holdings increased to $779 billion, making it the second-largest foreign holder after Japan. This decline, attributed to China’s gradual diversification away from US assets and market movements, serves as a cautionary sign for the US, especially following recent credit rating downgrades by Moody’s.
