@jolyon🇨🇳🇺🇸 China may have FAR more exposure to U.S. government debt than the headline numbers suggest. Officially, China's holdings dropped to $591 billion in August, their lowest level since 2008 and roughly half their 2019 level. But over that same period, Treasury holdings recorded in other financial centers have exploded... Canada's have climbed roughly 384% since 2019, while Belgium and Luxembourg, both major custodial hubs, reached record levels in August. So China's retreat from U.S. debt MAY be real, but the headline numbers might overstate just how far Beijing has actually moved away from the dollar. Source: FT / Writer: Samuel

@jolyon🇨🇳🇺🇸 China may have FAR more exposure to U.S. government debt than the headline numbers suggest. Officially, China's holdings dropped to $591 billion in August, their lowest level since 2008 and roughly half their 2019 level. But over that same period, Treasury holdings recorded in other financial centers have exploded... Canada's have climbed roughly 384% since 2019, while Belgium and Luxembourg, both major custodial hubs, reached record levels in August. So China's retreat from U.S. debt MAY be real, but the headline numbers might overstate just how far Beijing has actually moved away from the dollar. Source: FT / Writer: Samuel