China Sheds U.S. Treasury Bonds for Three Consecutive Months Whilst Accumulating a Gold Reserve Worth $247,876,656,239: News Account
China Increases Gold Holdings and Reduces US Treasury Securities
In a significant shift in its foreign exchange reserves, China has been increasing its gold bullion holdings while simultaneously reducing its holdings of US Treasury securities.
As of mid-2025, China's official gold bullion holdings stand at about 2,298.55 metric tons, marking an 8-month consecutive monthly increase. Recent additions have been around 70,000 ounces per month, representing roughly 6.9% of China's total foreign exchange reserves by value. This strategic move is part of a deliberate effort to diversify away from the US dollar.
However, some analysts estimate China's actual gold holdings could exceed 5,000 metric tons, potentially more than double the official figure. This suggests a significant hidden accumulation strategy by China to reduce reliance on dollar assets and boost monetary independence.
In contrast, China’s holdings of US Treasury securities have been declining steadily for over a decade. Foreign ownership of US Treasuries, including by China, has fallen from around 50% during the 2008 financial crisis to approximately 30% today. This trend reflects a broader trend of de-dollarization and reduced confidence in US debt.
Here's a summary comparison of the assets involved:
| Asset | Approximate Quantity (mid-2025) | Trend | Strategic Goal | |------------------------|-------------------------------------------|--------------------------------------|--------------------------------------| | Gold bullion (official) | ~2,298.55 metric tons | Increasing steadily (consistent buys) | Diversify reserves, reduce dollar reliance | | Gold bullion (estimated actual) | Possibly >5,000 metric tons | Significant undisclosed accumulation | Same as above | | US Treasury holdings | Declining, precise current volume not specified but down from peak | Long-term reduction over 15 years | De-dollarization, reduced exposure |
This strategic shift away from dependence on the US dollar and dollar-based assets is a notable development in the global financial landscape. As China continues to increase its gold bullion holdings and reduce its US Treasury holdings, it will be interesting to see how this trend unfolds in the coming months and years.
- With China's growing gold bullion holdings, there might be a rise in the exploration of cryptocurrency and altcoin investment, as part of a broader personal-finance and wealth-management strategy, offering more potential avenues to diversify financial assets further.
- Some financial experts suggest that the decrease in China's US Treasury securities and increase in gold bullion holdings could indicate a broader move towards decentralized finance, where blockchain technology plays a significant role.
- The strategic transition in China's foreign exchange reserves - increasing gold bullion and decreasing US Treasury securities - could inspire similar wealth-management tactics among individuals, as they assess their personal-finance portfolios and consider alternative investments such as cryptocurrency.
