减持美债，既是现实需要，也是战略选择

Core Viewpoint - China has significantly reduced its holdings of U.S. Treasury bonds, reaching a record low since 2009, while Japan and the UK have increased their holdings, indicating a shift in global investment strategies towards U.S. debt [1][3]. Group 1: China's Reduction of U.S. Treasury Holdings - In July 2023, China reduced its U.S. Treasury holdings by $25.7 billion to $730.7 billion, marking the fourth reduction this year [1]. - China's current holdings represent a decrease of nearly $600 billion from a peak of $1.32 trillion in November 2013, approaching half of its highest level [3]. Group 2: Reasons for China's Reduction - The continuous rise in U.S. government debt, which has reached $37 trillion, has diminished the safety of U.S. Treasury bonds, making it necessary for China to reduce its holdings to enhance asset security [4]. - The depreciation of the U.S. dollar has reduced its value retention function, prompting China to decrease its exposure to U.S. debt to mitigate asset devaluation risks [6]. - The increasing aggressiveness of U.S. foreign policy and trade practices under the Trump administration has weakened the credibility of U.S. debt, leading China to consider reducing its holdings to avoid potential defaults [8][10]. Group 3: Strategic Implications for China - Continuous reduction of U.S. Treasury holdings is seen as both a practical necessity and a strategic choice for China, with a target to maintain holdings at a reasonable level, ideally below $300 billion [12]. - The expectation is that China will continue to reduce its U.S. Treasury holdings by more than half in the coming years, reflecting a long-term strategy to manage financial risks associated with U.S. debt [12].