Group 1 - The U.S. Treasury Department reported that as of March 2025, Japan and the UK increased their holdings of U.S. Treasury bonds, while China reduced its holdings, dropping from the second-largest to the third-largest holder [1] - Japan increased its U.S. Treasury holdings by $4.9 billion to $1.1308 trillion, maintaining its position as the largest foreign holder [1] - China reduced its U.S. Treasury holdings by $18.9 billion to $765.4 billion, marking its first reduction of the year, and projections suggest it may fall below $700 billion by year-end if the trend continues [1] Group 2 - China has been diversifying its foreign reserves, having accumulated 1,208 tons of gold over the past decade, raising its official gold reserves to 2,262 tons, a 114% increase, making it the second-largest gold holder globally [3] - The U.S. Federal Reserve's aggressive monetary policies have led to increased debt and interest payments, raising concerns about the safety of U.S. Treasury bonds, which are now viewed by some as a Ponzi scheme [3][5] - The ongoing U.S.-China economic rivalry is characterized by a dual approach, with public tariff disputes and private financial tensions, as evidenced by China's simultaneous reduction of U.S. Treasury bonds and increase in gold reserves [5][7] Group 3 - Trump's recent statements indicate a desire for improved U.S.-China relations, emphasizing the importance of the relationship, although his request for a visit to China has not been reciprocated by the Chinese side [5] - The U.S. faces increased economic pressure due to China's reduction of Treasury holdings, which could exacerbate its existing economic challenges [5] - The strategic economic theory suggests that China should reconsider holding large amounts of U.S. debt, given the U.S. government's significant fiscal deficits funded through bond issuance [7]