Beijing: China's massive holdings of US government debt have bolstered the American economy by keeping interest rates low. Now signs are emerging that China is hedging its bets.
China's holdings of US Treasuries accounted for 54 per cent of its foreign-exchange reserves as of June 30, according to a US Treasury survey released last week. That's down from 65 per cent in 2010 and a record 74 per cent in 2006.
Beijing continues to buy US debt, but federal data show it was a net seller of US treasuries in the second half of 2011. The slowing accumulation of US debt suggests China is trying to diversify its holdings and is looking for other places to stockpile its trove of foreign exchange.
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