Falling Chinese Treasury holdings?
Holdings of US Treasuries officially booked to China have now fallen to a level on a par with those booked in the UK. As Brad Setser has taught us we should be suspicious of these data. “China made a decision around 2010 that holding Treasuries was a risk, it looked bad optically that so much of China’s wealth was in the hands of a geopolitical rival,” said Brad Setser, a senior fellow at the Council on Foreign Relations and former US Treasury official. The Chinese hold an awful lot of Treasuries in other places, but it is nevertheless a telling moment.
Source: Financial Times