China is rapidly divesting its holdings of U.S. assets, including U.S. Treasuries, and is increasingly buying gold at a record pace. This move is seen as part of a broader strategy to reduce reliance on the U.S. dollar in international trade. The divestment is driven by concerns over unsustainable U.S. debt, intensifying economic sanctions, and fears of a pending U.S. banking crisis. Additionally, this shift is viewed as a sign of China's strengthening economic ties with Russia.