Chinese ownership of US assets has has been on a gradual dip. According to the latest US Treasury International Capital (TIC) data, China’s combined holdings of Treasuries, stocks, agency securities, corporate bonds, and other instruments stood at approximately $1.56 trillion as of late 2025. The figure is the lowest it has been in 14 years. This figure includes holdings in Belgium, which many analysts believe serve as Chinese accounts. Excluding Belgium, the total drops to about $1.16 trillion, the lowest since 2008. Let’s discuss if China’s pullback from US assets is part of its diversification and de-dollarization agenda, or is it something more.
Is China’s Pullback From US Assets A Part Of Its Diversification And De-Dollarization Move?
The latest developments come right after Chinese authorities, including the People’s Bank of China (PBOC) and the National Financial Regulatory Administration advised domestic financial institutions to limit their exposure to US Treasuries in early February 2026. The dip in Chinese ownership of US assets could be a result of the PBOC’s actions.
Moreover, the timing of the pullback has drawn substantial attention. US-China relations have taken a hit over the last year, with President Trump’s tariff spree. Many have accused the US of weaponizing the US dollar, which may have led to China moving away from the greenback.
If China maintains its its sale of US Treasuries, it could add additional pressure on US borrowing costs.
Apart from decreasing its exposure to US assets, China has also substantially increased it gold holdings. Thee PBOC has purchased the yellow metal in nearly every month of 2025. The bank has added roughly 27 tonnes in 2025, bringing the official holdings to about 2,306 tonnes.
Also Read: US-China Tensions Accelerate De-Dollarisation in Chinese Academia
Additionally, China has increasingly pushed for more global use of the Chinese yuan. The de-dollarization movement has also seen a substantial surge in subscribers over the last 10 years. China, in particular, is playing a central role in its propagation.
