China has reduced its holdings of US Treasury securities to $693.3 billion in February, down from $694.4 billion in January 2026.

The steady decline has seen Beijing fall to third place among foreign holders, behind Japan and the United Kingdom, as it continues a multi-year strategy of trimming its exposure to American government debt.

Despite China's pullback, total foreign ownership of US Treasuries has climbed to a record $9.4 trillion, underscoring robust global demand for American government bonds.

The paradox reflects a shifting landscape where countries including Norway, Canada and Saudi Arabia have substantially increased their Treasury holdings, offsetting reductions by other major economies.

The developments come as America's total debt burden reached $38.6 trillion in February 2026, with the country's borrowing growing by roughly $1 trillion every three months.

Foreign investors now hold approximately 30 per cent of publicly held US debt, down from a peak of more than 50 per cent during the Global Financial Crisis, as domestic demand has absorbed an increasing share of Treasury issuance.

China reduced its Treasury position by $86 billion between November 2024 and November 2025, leading all countries in net selling during that period.

Meanwhile, Japan maintained its position as the largest foreign holder with approximately $1.2 trillion in holdings, while the United Kingdom secured second place with substantial increases over the past year.