China has reduced its holdings of US Treasury securities for the third consecutive month, with May data showing a decline of $900 million to $756.3 billion, the lowest level since 2009. This reduction comes amid ongoing trade tensions and concerns related to the US debt ceiling, which has caused alarm in Beijing. Despite China's trimming of its US debt stockpiles, the overall US Treasury market saw the largest inflow of foreign capital since 2022, with net purchases reported recently. The total US Treasury debt has surged by $441 billion since the debt ceiling was reached, bringing the total to $36.7 trillion. While China, the third-largest holder of US Treasuries, is cutting back, other holders such as Belgium have increased their holdings, partly due to custodial accounts for Chinese investors. Meanwhile, global equity flows into the US have declined in 2025, influenced by the ongoing trade war and doubts about American economic dominance.