UK Surpasses China: Now Second-Biggest Foreign Owner of U.S. Debt

China has steadily reduced its holdings of U.S. Treasuries

Overtakes China

the United Kingdom has overtaken China as the second-largest foreign holder of U.S. Treasury debt, according to newly released data from the U.S. Treasury and Bloomberg.

UK Holdings Top $779 Billion

As of March 2025, the UK holds approximately $779 billion in U.S. government bonds, edging ahead of China’s $765.4 billion.

The figures mark the first time in years that the UK has ranked above China in this key economic metric.

China’s Gradual Retreat Continues

China has steadily reduced its holdings of U.S. Treasuries over the past several years.

Back in February, it held over $784 billion, but the trend continues downward, part of Beijing’s broader strategy to diversify its foreign exchange reserves.

Japan Remains the Top Holder by Far

Despite the shakeup in second and third place, Japan maintains its long-standing position as the largest foreign holder of U.S. debt, with over $1.1 trillion in Treasuries, well ahead of both the UK and China.

Foreign Investors Hold Over $9 Trillion in U.S. Debt

Altogether, international investors control about $9.05 trillion in U.S. government bonds.

This represents nearly a third of America’s total $36 trillion national debt, highlighting the country’s continued dependence on foreign capital.

Federal Reserve Also Holds a Massive Share

While foreign governments hold a substantial slice, the Federal Reserve alone controls around $9 trillion in U.S. debt, more than any individual nation.

Its holdings have swelled in recent years due to economic stimulus programs and bond-buying efforts.

America’s Debt: A Growing Global Web

Of the $36 trillion U.S. national debt, roughly $28.9 trillion is held by investors, while $7.3 trillion covers government obligations like pensions and social benefits.

As global debt dynamics shift, Washington’s economic interdependence with its allies is under the spotlight.