Ex-Treasury Official: China Not Dumping US Debt, Just Shifting Holdings

China has not been dumping its Treasury bonds, according to former Treasury official Brad Setser.

Official US data does not fully capture China's US debt holdings, per Setser. A large portion is held in third-party accounts.

While China has sold some Treasurys, it has bought other US bonds like agency debt.

Setser estimates China's total US bond holdings have been stable at $1.8-$1.9 trillion since 2015.

China has shifted from Treasurys to agency bonds, but its overall US debt allocation remains high.