China's US Asset Holdings Drop to 14-Year Low Amid De-Dollarization Efforts

China's holdings of U.S. Treasuries, stocks, and bonds have reached their lowest levels in 14 years, according to the latest data from the U.S. Treasury. According to NS3.AI, this decline is attributed to directives from the People's Bank of China to reduce exposure to U.S. assets. This move comes amid deteriorating U.S.-China relations and concerns over the potential weaponization of the U.S. dollar. In response, China has increased its gold reserves and is promoting the international use of its yuan as part of a broader strategy to reduce reliance on the dollar.