China now holds more than $1.6 trillion in U.S. securities assets, according to the latest figures released by the Department of the Treasury, giving it its largest-ever share of America’s national debt.

 

Nearly two years ago (June 2009), Chinese holdings of U.S. securities totaled $1.464 trillion.

 

Earlier estimates of Chinese holdings were much lower. In comparing the American securities figures of China and the United Kingdom, Ian Talley at The Wall Street Journal said it appears that China had been “routing a significant portion of its purchases of U.S. Treasury securities through other major financial centers such as London to play down its debt profile in the U.S., a politically sensitive subject in Washington.”

 

As of June 2010, foreign holdings of U.S. securities totaled $10.7 trillion. The second place foreign debt holder was Japan at $1.4 trillion, with the United Kingdom third at $806 billion.

-Noel Brinkerhoff

 

China Owns a Lot More U.S. Debt Than Previously Thought (by Ian Talley, Wall Street Journal)

Preliminary Report on Foreign Holdings of U.S. Securities at End-June 2010 (Department of the Treasury)