China’s Grip On US Debt Weakens As Its Currency Crumbles

China is no longer the biggest foreign owner of U.S. debt. China is selling off its debt holdings to prop up its weakening currency, which recently dropped in value to an eight-year low, reports CNN Money. Japan overtook China as America’s biggest foreign creditor as the latter’s massive collection of U.S. Treasuries shrunk to its smallest size in six years, Bloomberg introduced. As of the end of October, China held $1.12 trillion in U.S. government bonds, bills, and notes, down $41.3 billion from the previous month. Japan held $1.13 trillion, down only $4.5 billion, according to a report released by the U.S. Department of the Treasury.