China significantly reduces its holdings of US dollar assets? Not really.

China's reserve assets in US dollars have not reduced holdings of US Treasury bonds, but have leaned more towards non-government debt and equity assets. The total amount of US Treasury bonds held by China may be around $13 to $14 trillion, slightly lower than the pre-pandemic level of around $15 trillion, but not as severe as reflected in the TIC data. In addition, China's major US dollar assets include short-term and long-term US Treasury bonds, corporate bonds and institutional bonds, equities, and deposits, with a total value slightly above $2 trillion since 2018, which matches the trend and accounts for about 60% of China's reserve assets and the value of other foreign currency assets.