China US Treasury holdings hit 18-year low

China's official holdings of US Treasury bonds fell to $591 billion as of August 2026, marking an 18-year low. This represents a significant decline from approximately $1 trillion held in April 2022 and over $700 billion a year prior.

Despite the drop in official records, financial experts and data from the US Treasury Department suggest China's actual position may be higher. Because Treasury data is compiled through brokers and custodial institutions, the ultimate owners of securities are not always directly identifiable.

Significant increases in US Treasury holdings have been observed in Canada and Belgium, fueling speculation that Chinese assets may have been moved to foreign custodial centers. Canada's holdings rose from $169 billion five years ago to $465 billion in August 2026, while Belgium's stock increased from $228 billion to $490.5 billion over the same period. Brad Setser, a senior researcher at the Council on Foreign Relations and former US Treasury official, noted strong indications that Chinese assets could be held in custodial accounts across Canada, the UK, France, Luxembourg, and Belgium.