China, U.s. Treasury | featured news

China remained the largest foreign holder of U.S. Treasurys in April, marginally increasing its net portfolio. Japan reduced its net holdings for the second month in a row. Overall, foreigners were net buyers of long-term U.S. financial assets in April, according to the monthly Treasury International Capital report, known as TIC.

Every six months, the Treasury issues a report declaring that China’s currency is undervalued, draining dollars and jobs out of the U.S. economy. And every six months, the Treasury defers action, saying the Beijing government is not manipulating its currency. But with the prolonged slump in jobs, pressure is mounting among American politicians — as well as those in Europe, Brazil and emerging markets — to challenge China, even if that means imposing import tariffs to protect domestic industries and jobs.

Vice President Biden mistakenly claimed Americans own 85% of U.S. Treasury securities during his visit to China.

China and other governments have little choice but to keep buying U.S. Treasury debt to store swelling foreign reserves even after Washington’s credit rating was cut by Standard & Poor’s.

China boosted its net holdings of U.S. Treasurys in May for the second month in a row, remaining the largest foreign holder, according to the Treasury International Capital report.

China boosted its holdings of U.S. Treasurys to its largest position in nearly a year during October as it remained the largest foreign holder of U.S. government debt, the Treasury Department said.

China, the largest foreign holder of U.S. Treasurys, sold a net $5.8 billion of the government's debt in January on top of more than $34 billion in December. It also continued shifting its holdings into longer-term paper.

China gave up its title to Japan as the largest holder of U.S. Treasury securities in December as foreigners bought U.S. assets at a brisk pace.