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China cuts US debt holdings by 36.5 billion USD

(Beijing Times)

15:02, October 19, 2011

Edited and Translated by Han Shasha, People's Daily Online

China has trimmed its holdings of US Treasury debt by 36.5 billion US dollars in August, which was the first decrease after four consecutive months of increases.

China, the United States' largest creditor, cut its holdings 3.1 percent to 1.14 trillion U.S. dollars in August. Japan, the second-largest buyer of U.S. Treasury bonds, increased its holdings 2.4 percent to 936.6 billion U.S. dollars, while Britain, the third-largest buyer, increased its holdings 12.4 percent to 397.2 billion U.S. dollars.

Since China’s holdings of U.S. Treasury debt reached 1.1 trillion U.S. dollars last June, the total holdings have never decreased below 1 trillion. From April to July, China increased its U.S. Treasury debt by 28.6 billion, 7.6 billion in April, 7.3 billion in May, 5.7 billion in June and 8 billion in July.

On Aug. 5, Standard & Poor's downgraded the credit rating of long-term U.S. debt from AAA to AA+. Some analysts said that the decrease of China's holdings of U.S. Treasury debt can be attributed to the downgrade of the credit rating.


Leave your comment6 comments

  1. Name

PD User at 2011-10-2080.94.16.*
2011-10-20.All question be interestet to birth ask-China to help cut west debt"s but still intrgue and provoke western states against China.To give money they a West to beat wisp.At present crisis be chance on to fall West.China to have new weapon-sanction mone"s.
PD User at 2011-10-20115.133.57.*
There can be several reasons why China dare not dump US bonds.1. USA will use the HAARP machine to cause severe earthquakes and typhoons in China ( as in Wenchuan in 2008). See YouTube "Benjamin Fulford and HAARP" "China Earthquake and HAARP"2. USA will stage more "incidents" and claim North Korea did it and hold major military exercises near China"s coast just to threaten China3.USA/NATO will whip up the Uighurs and the Tibetans to do very spectacular killings or suicides to destroy China"s image and international standing4. Blackmail China by withholding technology transfer or sharing in big joint ventures in China, USA/EU will refuse to sell China any hi-tech sub-components5. USA can ratchet up arms sales to Taiwan and implement a missile defence corridor to surround China with the help of Japan, S. Korea and India6.USA will stir up the feelings of ASEAN countries against China in the South China Sea (Spratlys)and create a alliance of nations to contain China.7. Or there may be an unwritten but implied threat that if China dumps all, USA may launch a nuclear strike against China.
PD User at 2011-10-20114.244.62.*
Yes, China should NOT continue funding USA need for money to be used to invade other countries and displaced the lives of million of people from Iraq, Afganistan Libya, etc. We need this money right here in China to help our people. This money is the sweat and blood of the Chinese nation and deserve to be kept and used at home.
ASEAN at 2011-10-19220.255.2.*
Cut further and cut drastically your US$ holding.It seems that the Chinese leadership is not so wise. The more you hold US$, the more you are having your own economic suicide. US is going to face big economic problems very soon. Alot of intelligent businessmen is already dumping the US$ for Swiss Franc, Singapore Dollars or for Gold.What are you waiting ?
wende at 2011-10-1971.255.93.*
I hope next month China would not increase its holding by the same amount. Many countries have cut down on US dollar holdings. QE3 is poised to start. More US dollars in the market. Not a good sign.

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