I still think that China's selling of U.S. bonds is just a common operation? Wrong! The truth is that we are learning the bloody lesson of Russia's 300 billion yuan assets being frozen and jumping out of the ship before the US credit collapse! But look at Japan, which is holding US$1.15 trillion in U.S. debt as a treasure, and added an additional US$3.8 billion in holdings in July, becoming the next burial object to be "buried alive" by the United States!
Many people still don’t understand how Russia’s assets have been frozen.
In 2022, the conflict between Russia and Ukraine broke out. Less than a week later, the United States and the G7 issued an order, and the US $300 billion in overseas assets of the Russian Central Bank were instantly frozen.
The Bank of European Settlements has 210 billion euros in its hands, which is said to be a "temporary freeze." In fact, by 2025, even interest and capital will be used to pay wages and build railways in Ukraine.
By May of this year, even European Central Bank President Lagarde could no longer stand it, warning that it would "undermine the global financial order", but who listened?
Belgium's Bank for European Settlements directly distributed US$3.4 billion to Western investors, as if it were spoils. At this point, Russia's 300 billion yuan has been completely wasted.
Who wouldn't be heartbroken when watching such a thing? You think you're saving money, but you're actually taking someone else's hostage.
China can see too clearly, today it is Russia, and who will be tomorrow?
We are now reducing our holdings of US debt not because of market fluctuations, but because of survival instincts.
Starting in 2022, China’s rate of selling U.S. bonds has not stopped.
In 2022, the annual decrease will be US$173.2 billion, in 2023, it will be US$50.8 billion, and in 2024, it will be US$57.3 billion.
Now in 2025, a month in July, it has decreased by $25.7 billion, and total holdings have fallen to $730.7 billion, a new low in sixteen years.
Some people say that this will affect China's foreign exchange security, but they are wrong. What is really dangerous is to continue to stick to US debt.
Russia’s $300 billion is used to teach the world that when political conflict overpowers financial rules, so-called “credit assets” are a joke.
More importantly, the United States itself will not be able to withstand it.In 2025, the federal debt has exceeded $37 trillion, and the interest rate will return $1 trillion a year, accounting for 4% of GDP.
The U.S. government has become a "super credit card user" who borrows new debt to repay old debt. In the first half of the year, it had a deficit of 1.3 trillion yuan.
Rating agencies also stopped acting. In May, Moody's lowered the U.S. sovereign credit from Aaa to Aa1. The market reacted immediately, and the U.S. bond yield soared to more than 4.5%.
Who would dare to buy U.S. debt at this time?
In July, Japan not only did not decrease, but instead bought 3.8 billion, total holdings of $1.15 trillion, becoming the largest overseas creditor of the United States.
In Japan’s foreign exchange reserves, 91.9% are U.S. dollar assets, with a domestic interest rate of only 1.9%, only to pursue that 4.5% yield rate.
Even more tragic is the fact that politically you have to listen to the United States, Trump just took office and forced the yen to rise in value, and Japan can only buy U.S. debt to stabilize the exchange rate.
But the problem is that once something happens to the US debt, Japan will be the next Russia.
If U.S. debt shrinks by 30%, it means that Japan will evaporate $345 billion, equivalent to 6% of GDP.
Looking at China again, while reducing its holdings of U.S. debt, gold is quietly increasing its holdings.
From November 2024 to August 2025, China's central bank bought gold for 10 consecutive months, no matter how high the price of gold, it will buy without delay.
Gold will not be frozen, sanctioned, and sentenced to death by a rating agency.
In fact, not only China, but the world is jumping boats.Brazil last year cut $20 billion in debt and bought 50 tons of gold; India this year also dropped $15 billion in debt and transferred to crude oil and minerals.
IMF data also speaks: In 2022, the US dollar will account for 60% of global reserves, but now there is only 55% left. This is no accident, it is a trend.
And the starting point of all this is Russia’s “lively buried” 30 billion.
At that moment, the whole world began to realize that the US dollar is no longer a neutral currency. It is a weapon of the United States and a financial bomb that can be detonated at any time.
Now, looking at China’s every reduction, it is not arbitrary operation, we are not fleeing the market, but avoiding the battlefield.
The United States, by freezing Russian assets, has ripped off the last layer of its financial neutrality.
The world began to vote with its feet and began to de-dollarize. The proportion of RMB in international settlements has risen from 12% in 2020 to 28% now.
More and more countries are beginning to trade in local currencies, settle with gold, and exchange resources for resources. The hegemony of the US dollar is no longer unshakable.
And what about Japan? Still carrying that pile of U.S. debt, it is used as a pressure stone. But it's not a stone, it's a bomb, it's timed. When the United States snaps its fingers on another financial sanction, Japan may not even have time to react.
Many people still don’t understand how Russia’s assets have been frozen.
In 2022, the conflict between Russia and Ukraine broke out. Less than a week later, the United States and the G7 issued an order, and the US $300 billion in overseas assets of the Russian Central Bank were instantly frozen.
The Bank of European Settlements has 210 billion euros in its hands, which is said to be a "temporary freeze." In fact, by 2025, even interest and capital will be used to pay wages and build railways in Ukraine.
By May of this year, even European Central Bank President Lagarde could no longer stand it, warning that it would "undermine the global financial order", but who listened?
Belgium's Bank for European Settlements directly distributed US$3.4 billion to Western investors, as if it were spoils. At this point, Russia's 300 billion yuan has been completely wasted.
Who wouldn't be heartbroken when watching such a thing? You think you're saving money, but you're actually taking someone else's hostage.
China can see too clearly, today it is Russia, and who will be tomorrow?
We are now reducing our holdings of US debt not because of market fluctuations, but because of survival instincts.
Starting in 2022, China’s rate of selling U.S. bonds has not stopped.
In 2022, the annual decrease will be US$173.2 billion, in 2023, it will be US$50.8 billion, and in 2024, it will be US$57.3 billion.
Now in 2025, a month in July, it has decreased by $25.7 billion, and total holdings have fallen to $730.7 billion, a new low in sixteen years.
Some people say that this will affect China's foreign exchange security, but they are wrong. What is really dangerous is to continue to stick to US debt.
Russia’s $300 billion is used to teach the world that when political conflict overpowers financial rules, so-called “credit assets” are a joke.
More importantly, the United States itself will not be able to withstand it.In 2025, the federal debt has exceeded $37 trillion, and the interest rate will return $1 trillion a year, accounting for 4% of GDP.
The U.S. government has become a "super credit card user" who borrows new debt to repay old debt. In the first half of the year, it had a deficit of 1.3 trillion yuan.
Rating agencies also stopped acting. In May, Moody's lowered the U.S. sovereign credit from Aaa to Aa1. The market reacted immediately, and the U.S. bond yield soared to more than 4.5%.
Who would dare to buy U.S. debt at this time?
In July, Japan not only did not decrease, but instead bought 3.8 billion, total holdings of $1.15 trillion, becoming the largest overseas creditor of the United States.
In Japan’s foreign exchange reserves, 91.9% are U.S. dollar assets, with a domestic interest rate of only 1.9%, only to pursue that 4.5% yield rate.
Even more tragic is the fact that politically you have to listen to the United States, Trump just took office and forced the yen to rise in value, and Japan can only buy U.S. debt to stabilize the exchange rate.
But the problem is that once something happens to the US debt, Japan will be the next Russia.
If U.S. debt shrinks by 30%, it means that Japan will evaporate $345 billion, equivalent to 6% of GDP.
Looking at China again, while reducing its holdings of U.S. debt, gold is quietly increasing its holdings.
From November 2024 to August 2025, China's central bank bought gold for 10 consecutive months, no matter how high the price of gold, it will buy without delay.
Gold will not be frozen, sanctioned, and sentenced to death by a rating agency.
In fact, not only China, but the world is jumping boats.Brazil last year cut $20 billion in debt and bought 50 tons of gold; India this year also dropped $15 billion in debt and transferred to crude oil and minerals.
IMF data also speaks: In 2022, the US dollar will account for 60% of global reserves, but now there is only 55% left. This is no accident, it is a trend.
And the starting point of all this is Russia’s “lively buried” 30 billion.
At that moment, the whole world began to realize that the US dollar is no longer a neutral currency. It is a weapon of the United States and a financial bomb that can be detonated at any time.
Now, looking at China’s every reduction, it is not arbitrary operation, we are not fleeing the market, but avoiding the battlefield.
The United States, by freezing Russian assets, has ripped off the last layer of its financial neutrality.
The world began to vote with its feet and began to de-dollarize. The proportion of RMB in international settlements has risen from 12% in 2020 to 28% now.
More and more countries are beginning to trade in local currencies, settle with gold, and exchange resources for resources. The hegemony of the US dollar is no longer unshakable.
And what about Japan? Still carrying that pile of U.S. debt, it is used as a pressure stone. But it's not a stone, it's a bomb, it's timed. When the United States snaps its fingers on another financial sanction, Japan may not even have time to react.