Group 1 - China has significantly reduced its holdings of US Treasury bonds, dropping to the third-largest holder after previously being the largest, signaling a major shift in its relationship with the US dollar system [2][3][5] - The reduction in US Treasury holdings reflects a broader trend of China moving away from cooperation with the US, particularly in light of the ongoing trade tensions and tariff wars [7][9] - Historically, China held as much as $1.3 trillion in US debt, accounting for about 23% of the global total, which would equate to approximately $5 trillion today if maintained [5][9][10] Group 2 - The current situation indicates that China is less inclined to support the US dollar system, which could lead to a new currency system being established based on China's extensive trade network [9][12] - The US is facing a critical situation with approximately $36 trillion in debt and increasing interest payments, necessitating foreign investment in US Treasury bonds, which is becoming more challenging as China withdraws [12][14] - The ongoing trade war and the recent decline in US financial markets suggest that the US may not be an attractive investment destination, prompting a search for alternative systems [14]