China Remains Biggest Holder of U.S. Treasury Securities
China remains the largest foreign holder of U.S. Treasury securities at the end of 2009
China remains the largest foreign holder of U.S. Treasury securities at the end of 2009, according to a new government data released on Feb.26, 2010. China held 894.8 billion U.S. dollars in Treasury at the end of Dec. 2009, more than 755.4 billion U.S. dollars that had been previously estimated. Japan held 76.57 billion U.S. dollars, less than 76.9 billion that had been previously estimated.
Oil exporters (15 countries including Saudi Arabia, the United Arab Emirates, Venezuela and Iran, etc.) followed China and Japan as the main holders of U.S. Treasury securities with 20.74 billion U.S. dollars in Treasury securities and the United Kingdom 17.8 billion U.S. dollars, Brazil 16.93 U.S. dollars and China Hong Kong 14.87 U.S. billions.
The U.S. Treasury reported on Feb. 16 that Japan surpassed China as the largest holder of U.S. Treasury securities when China unloaded 34 billion U.S. dollars of U.S. government debt in Dec. 2009.
The data had been revised due to the suspicion from the U.S. Congress. On Feb. 25, a hearing on China's lending activities U.S. debt, as well as China's Current Holdings of U.S. Debt and Other Securities and the Implications for American Businesses and the Economy, was held by US-China Economic & Security Review Commission of the U.S. Congress.
China and the United Kingdom were two most influenced countries by the revision. China's holding increased to 915.8 billion U.S. dollars from 776.4 billion and the United Kingdom down from 213.4 billion to 89 billion.
China held the most U.S. debt in July, 2009, with 939.9 billion U.S. dollars, down 45 billion from that of 2008. Only in Dec. 2009, China reduced 34.2 billion U.S. dollars, the most in monthly change. Most countries and regions increased their holdings of U.S. debt in 2009. Among them, China increased 167.4 billion, Japan 140 billion, China Hong Kong 71.5 billion and the United Kingdom 47 billion.
