China’s US Debt Holdings Drop to 12-Year-Low, Further Reductions May Follow

Newly redesigned $100 notes lay in stacks at the Bureau of Engraving and Printing in Washington on May 20, 2013. Mark Wilson/Getty Images

China’s holdings of U.S. debt dropped to the lowest since 2010 after falling below the $1 trillion mark in May, according to data released by the U.S. Treasury on Aug. 15.

After seven months of continuous decreases, China’s U.S. Treasury holdings dropped to $967.8 billion in June, $113 billion less than last November, according to international capital flows.