The latest data shows that China has sold 101.9 billion USD of US Treasury bonds in the past 12 months.
According to the US Treasury Department, China cut US Treasury bonds from $869.3 billion in March last year to $767.4 billion in March this year.
China's holdings of US Treasury bonds have continued to decline from an all-time high of 1.31 trillion USD set in November 2013.
The Global Times reported that as of February this year, China was still the second largest creditor to the US government. However, the amount of US Treasury bonds held by China has been below the $1 trillion mark since April 2022.
Dong Shaopeng, senior research fellow at the Chongyang Institute for Financial Studies at the People's University of China, said that the large-scale cut marks China's adjustment of foreign exchange reserve structure, affected by factors including the country's external balance of payments and US Treasury yields.
The above news was made as China accelerated to reduce the use of the US dollar in cross-border trade and as the BRICS economic alliance planned to launch a common currency to compete with the US dollar.
As the global trend towards de-dollarization begins, many countries have also accelerated the diversification of their reserves by increasing gold reserves and using domestic currencies for international payments.
China's gold reserves reached 72.74 million ounces at the end of March, up 160,000 ounces per month, marking the country's 17th consecutive month of increasing gold reserves.
These developments are being closely monitored by the US Federal Reserve (Fed).
At a recent conference on the global importance of the US dollar, Fed Governor Christopher Waller denied predictions that the US dollar is likely to collapse, but acknowledged the US dollars role as a globally threatened reserve currency.
Mr. Waller pointed out that the use of sanctions against foreign countries by the US is one of the factors affecting the future dominance of the USD.
If these sanctions and policies continue, the changing context of cross-border payments including the rapid growth of cryptocurrencies could also challenge the dominance of the US dollar, Waller said.
However, Mr. Waller reassured the American people that there is no need to worry because the greenback is still the most used currency in the world in all transactions, despite the threat of de-dollarization.
In February, Mr. Waller also said that despite the challenges, countries have very few practical alternatives to the US dollar, noting that in times of global tensions, the world is chasing the US dollar, not away from it.
