Who holds the most US bonds?
As of January 2023, the five countries owning the most US debt are Japan ($1.1 trillion), China ($859 billion), the United Kingdom ($668 billion), Belgium ($331 billion), and Luxembourg ($318 billion).
Foreign holders of United States treasury debt
Of the total 7.6 trillion held by foreign countries, Japan and Mainland China held the greatest portions, with China holding 868.9 billion U.S. dollars in U.S. securities.
Many people believe that much of the U.S. national debt is owed to foreign countries like China and Japan, but the truth is that most of it is owed to Social Security and pension funds right here in the U.S. This means that U.S. citizens own most of the national debt.
Though China owns a large amount of U.S. debt, it isn't the United States's largest creditor. The greatest amount of U.S. debt is owned by the U.S. government, while the largest foreign creditor is Japan. China owns around 2.6% of U.S. debt, which it buys because the Chinese yuan is pegged to the dollar.
| Country Name | Value of Holdings (Billions of $) |
|---|---|
| Belgium | 120.4 |
| India | 118.2 |
| Saudi Arabia | 102.8 |
| Singapore | 102.2 |
If China “dumped” USA treasuries, they would take a serious monetary loss. The price of the treasuries would drop, effective raising the return for those who bought the bonds.
Selling Treasurys is a fast way to whip up U.S. dollars, and China will sometimes use extra dollars to go out on the global market and buy up their own currency. That artificially pumps up its value.
US Treasurys Owned by China, in USD Billions
As of Oct. 2022, China owns $769.6 billion of the total $7,565 billion U.S. national debt.
The United States pays interest on approximately $850 billion in debt held by the People's Republic of China. China, however, is currently in default on its sovereign debt held by American bondholders.
As of December 2023, total federal debt was $33.1 trillion; $26.5 trillion held by the public and $12.1 trillion in intragovernmental debt.
What is the most indebted country in the world?
At the top is Japan, whose national debt has remained above 100% of its GDP for two decades, reaching 255% in 2023.
According to the question, the answer is No. Following the Russia's debts despite the fact that they increased upto $326.6billions, these debts don't bear any from USA.
As a result, totals from January 2023 are lower than reported. As of January 2023, the five countries owning the most US debt are Japan ($1.1 trillion), China ($859 billion), the United Kingdom ($668 billion), Belgium ($331 billion), and Luxembourg ($318 billion).
In fact, very much like Norway, Singapore has more assets than debt. Which means that de facto the Singaporean government has no net debt. And what is more impressive, without the vast natural resources Singapore has. This is a privileged situation to be in, but Singaporeans have earned that privilege.
Tax cuts, stimulus programs, increased government spending, and decreased tax revenue caused by widespread unemployment generally account for sharp rises in the national debt.
Most include a combination of deep spending cuts and tax increases to bend the debt curve. Cutting spending. Most comprehensive proposals to rein in the debt include major cuts to spending on entitlement programs and defense.
China sells the most US assets in 4 years, dumping $21 billion of US stock and Treasury bonds. Chinese investors sold $21.2 billion in US equities and Treasuries, the US Treasury said Wednesday.
If the central bank signals that it will normalize policy and might hike rates, Japanese investors like banks and life insurers could start dumping Treasuries to buy more-attractive domestic bonds. Along with any winding down of the carry trade, this would send Treasury yields higher and weigh on the dollar.
Debt as a share of GDP has risen to about the same level as in the United States, while in dollar terms China's total debt ($47.5 trillion) is still markedly below that of the United States (close to $70 trillion). As for non-financial corporate debt, China's 28 percent share is the largest in the world.
A sizeable sell-off of Treasury securities by China would almost certainly lead to an appreciation of China's currency and depreciation of the dollar. This is more likely to help the United States than to hurt us, contrary to the claims of many observers.
Does US borrow money from China?
Investors in Japan and China hold significant shares of U.S. public debt. Together, as of September 2022, they accounted for nearly $2 trillion, or about 8 percent of DHBP.
As of February 2024, China's foreign exchange reserves totaled US$3.225 trillion, which is the highest foreign exchange reserves of any country. The management of foreign exchange reserves is governed by the State Administration of Foreign Exchange (SAFE) and the People's Bank of China.
But other experts argue the risk of a hard landing is low. China has little overseas debt, and a high national savings rate. In addition, most of the debt is state owned – state-controlled banks loaned funds to state-controlled firms – giving the government the ability to manage the situation.
The United States supported China's entrance into the World Trade Organization at the turn of the millennium, which led to an export boom of Chinese goods into the U.S. China ended up parking much of its sales in U.S. Treasurys, CNN reported, because of their perceived safety as an investment.
A former US official explains the mystery. China is not dumping its stockpile of US bonds, Brad Setser, a former Treasury official, wrote. A large part of China's holdings is not accounted for in official US data, he said. While it has sold some Treasurys, Beijing has bought up US debt in the form of agency bonds.
