China is fleeing life; and Japan can only wait for destruction! still think that China sells U.S. debt, just ordinary financial operation? wrong! the truth is, we are walking on the Russian 30 billion assets frozen blood tears lesson, taking the boat before the U.S. credit collapse to escape! can look again to Japan, spending $1.15 trillion U.S. debt as a baby, in July added $3.8 billion, becoming the next, to be "lively buried" by the United States!
China has been accelerating its withdrawal from the U.S. bond market over the years, not a momentary rise, but a steady move under long-term planning.
The real reason behind it is not only the investment choice at the financial level, but the profound changes in the entire international political and financial landscape.
U.S. Treasury bonds have been at the heart of the global financial system for the past few decades. Central banks are holding U.S. debt in their hands, looking for security, liquidity and stability.
But the situation has changed significantly in recent years, especially after Russia’s central bank assets were frozen by the United States and Europe, breaking the bottom line of “sovereign assets are inviolable.”
This means that as long as a country is geopolitically wrong, assets in the U.S. system can be frozen at any time, even the money of the central bank.
This seemed like a first step for the global central bank, which was always considered the world’s safest asset and suddenly became no longer reliable.
More disturbingly, these frozen assets are also suggested to be removed from war funding, blurring the boundaries between financial instruments and military conflict.
In this context, China has begun to adjust its strategy and this trend can be clearly seen from the data.
In 2022, China reduced more than $170 billion in U.S. debt, continued to reduce more than $50 billion in 2023, and so far this year has sold more than $50 billion.
With $25.7 billion sold in the last month, there are currently only about $73 billion left, the lowest in 15 years.
This is not a simple "de-dollarization", but a complete set of strategies: reducing U.S. debt holdings, increasing gold reserves, and promoting the settlement status of RMB in international trade.
For example, China has vigorously promoted the use of RMB for settlement in oil trade, and has gradually made progress in actual operation.
In stark contrast to China is Japan.
It is also the main holder of U.S. government bonds, but Japan has chosen to continue to increase its holdings.
At the time of China's reduction of holdings, Japan added $3.8 billion in purchases in July, and the total holdings of U.S. bonds have exceeded $1.15 trillion.
On the one hand, Japan relies heavily on the United States in terms of security and military, and this deep alliance makes it more willing to maintain financial bonds with the United States.
On the other hand, the central bank of Japan uses U.S. bonds to regulate exchange rates, such as having to sell or buy U.S. bonds when intervening in the foreign exchange market to influence the dollar against the yen.
The Japanese government has made a trade-off between maintaining the stability of the yen and maintaining relations with the United States, even if it means continuing to bet on risky U.S. debt.
This also exposes Japan’s some sort of passivity, and once the US bond market turbulences, it will be difficult for Japan to self-sufficient.
On the other hand, the United States itself is also facing fiscal imbalances.The total debt has surpassed $37 trillion, and this year's fiscal deficit is expected to close to $2 trillion.
Markets have long begun to demand higher risk compensation, such as a 30-year government bond yield that is approaching 5 percent, reflecting a decline in investor confidence in U.S. debt repayment.
The United States’ preservation of its global financial hegemony by issuing debt, while using finance as a tool of sanctions, is a paradox.
On the other hand, it is hoped that other countries will continue to trust the U.S. debt and consume that trust through asset freezing and political intervention.
As a result, countries like China have begun to think about how to jump boats, and allies like Japan have chosen to keep holding on to the big tree of the United States because the system is too deeply bound.
China no longer believes that the system can serve itself in a long-term and stable manner, so it is actively disengaged; while Japan is also aware of the risks, due to various structural dependencies, it can only continue to bet.
This different path choice is a different judgment of the future world situation and a reflection of the reality of national strategic autonomy.
The world is entering an era of multipolar competition, and the pattern of the financial system is changing with it.
U.S. debt is no longer the "security asset" that all countries can safely hold, but more like a double-edged sword, which can both preserve value and may become a source of risk that is difficult to get rid of in a moment when the political wind changes.
The source:
1. In July, China reduced its holdings of U.S. debt by US $25.7 billion, the lowest position in 16 years, 2025-09-19, Observer.com
2. Japan increased its holdings of U.S. debt in June, while China's holdings remained unchanged, 2025-08-16, financial sector
China has been accelerating its withdrawal from the U.S. bond market over the years, not a momentary rise, but a steady move under long-term planning.
The real reason behind it is not only the investment choice at the financial level, but the profound changes in the entire international political and financial landscape.
U.S. Treasury bonds have been at the heart of the global financial system for the past few decades. Central banks are holding U.S. debt in their hands, looking for security, liquidity and stability.
But the situation has changed significantly in recent years, especially after Russia’s central bank assets were frozen by the United States and Europe, breaking the bottom line of “sovereign assets are inviolable.”
This means that as long as a country is geopolitically wrong, assets in the U.S. system can be frozen at any time, even the money of the central bank.
This seemed like a first step for the global central bank, which was always considered the world’s safest asset and suddenly became no longer reliable.
More disturbingly, these frozen assets are also suggested to be removed from war funding, blurring the boundaries between financial instruments and military conflict.
In this context, China has begun to adjust its strategy and this trend can be clearly seen from the data.
In 2022, China reduced more than $170 billion in U.S. debt, continued to reduce more than $50 billion in 2023, and so far this year has sold more than $50 billion.
With $25.7 billion sold in the last month, there are currently only about $73 billion left, the lowest in 15 years.
This is not a simple "de-dollarization", but a complete set of strategies: reducing U.S. debt holdings, increasing gold reserves, and promoting the settlement status of RMB in international trade.
For example, China has vigorously promoted the use of RMB for settlement in oil trade, and has gradually made progress in actual operation.
In stark contrast to China is Japan.
It is also the main holder of U.S. government bonds, but Japan has chosen to continue to increase its holdings.
At the time of China's reduction of holdings, Japan added $3.8 billion in purchases in July, and the total holdings of U.S. bonds have exceeded $1.15 trillion.
On the one hand, Japan relies heavily on the United States in terms of security and military, and this deep alliance makes it more willing to maintain financial bonds with the United States.
On the other hand, the central bank of Japan uses U.S. bonds to regulate exchange rates, such as having to sell or buy U.S. bonds when intervening in the foreign exchange market to influence the dollar against the yen.
The Japanese government has made a trade-off between maintaining the stability of the yen and maintaining relations with the United States, even if it means continuing to bet on risky U.S. debt.
This also exposes Japan’s some sort of passivity, and once the US bond market turbulences, it will be difficult for Japan to self-sufficient.
On the other hand, the United States itself is also facing fiscal imbalances.The total debt has surpassed $37 trillion, and this year's fiscal deficit is expected to close to $2 trillion.
Markets have long begun to demand higher risk compensation, such as a 30-year government bond yield that is approaching 5 percent, reflecting a decline in investor confidence in U.S. debt repayment.
The United States’ preservation of its global financial hegemony by issuing debt, while using finance as a tool of sanctions, is a paradox.
On the other hand, it is hoped that other countries will continue to trust the U.S. debt and consume that trust through asset freezing and political intervention.
As a result, countries like China have begun to think about how to jump boats, and allies like Japan have chosen to keep holding on to the big tree of the United States because the system is too deeply bound.
China no longer believes that the system can serve itself in a long-term and stable manner, so it is actively disengaged; while Japan is also aware of the risks, due to various structural dependencies, it can only continue to bet.
This different path choice is a different judgment of the future world situation and a reflection of the reality of national strategic autonomy.
The world is entering an era of multipolar competition, and the pattern of the financial system is changing with it.
U.S. debt is no longer the "security asset" that all countries can safely hold, but more like a double-edged sword, which can both preserve value and may become a source of risk that is difficult to get rid of in a moment when the political wind changes.
The source:
1. In July, China reduced its holdings of U.S. debt by US $25.7 billion, the lowest position in 16 years, 2025-09-19, Observer.com
2. Japan increased its holdings of U.S. debt in June, while China's holdings remained unchanged, 2025-08-16, financial sector