According to Shenchao TechFlow news and reports from Jinshi Data, on May 16 local time, the U.S. Treasury Department released data showing that in March 2025, among the top three foreign holders of U.S. debt, Japan and the UK increased their holdings of U.S. Treasury bonds, while China reduced its holdings. China dropped from being the second-largest holder of U.S. debt to the third largest, with the UK rising to the second largest. March coincided with the eve of turbulence in the U.S. Treasury market. The U.S. Treasury Department's International Capital Flow Report (TIC) for March 2025 showed that Japan increased its holdings of U.S. Treasury bonds by $4.9 billion, with total holdings at $1,130.8 billion, remaining the largest holder of U.S. debt. In March, China reduced its holdings of U.S. Treasury bonds by $18.9 billion to $765.4 billion, marking the first reduction this year. After the reduction, China's holdings of U.S. Treasury bonds fell from second to third. Since April 2022, China's holdings of U.S. debt have remained below $1 trillion, showing an overall trend of reduction. In January 2025, China increased its holdings of U.S. Treasury bonds by $1.8 billion, and in February it increased by $23.5 billion. In 2022, 2023, and 2024, China reduced its holdings of U.S. Treasury bonds by $173.2 billion, $50.8 billion, and $57.3 billion, respectively.