Just saw that China reduced its U.S. Treasury holdings by over $6 billion in November — and that's notable because we're now at the lowest level since 2008.

What interests me: this is not an isolated case. Since the beginning of 2025, China has reduced its U.S. debt holdings by a total of 10 percent. At the same time, the country is massively increasing its gold purchases — gold reserves have risen to over 74 million ounces. This looks like a deliberate reallocation.

Still, China remains the third-largest international holder of U.S. Treasuries, behind Japan and the United Kingdom. But the trend is clear: moving away from dollar debt toward assets that are harder to control.

What’s interesting is the strategy behind this. China is optimizing its foreign exchange reserves and diversifying away from assets that are geopolitically vulnerable. Gold accounts for only 5 percent of total reserves, but the direction says a lot. While the U.S. leverages its financial hegemony through the dollar, China is repositioning itself.

This could be relevant for markets in the long term — if major players like China continue to reduce their U.S. Treasury positions, it will impact yields and stability. We should keep an eye on this.