China has reduced its holdings of U.S. Treasuries by $6.1 billion in November, marking its lowest exposure since 2008, according to U.S. Treasury data. This move is part of China's ongoing strategy to diversify its foreign reserves, which has seen a 10% reduction in U.S. debt holdings since January 2025. Despite this decrease, China remains the third-largest international holder of U.S. debt, following Japan and the U.K. The reduction in U.S. Treasury holdings aligns with China's broader strategy to optimize and diversify its foreign asset portfolio, enhancing its financial stability. Concurrently, China has been on a 14-month gold buying spree, increasing its gold reserves to 74.15 million ounces, which still represents only 5% of its total foreign reserves. This shift reflects China's preference for assets less susceptible to external control, as it continues to navigate economic tensions with the U.S.