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China may quietly start dumping even more US Treasuries, a move that could have significant implications for the global economy. The potential sell-off comes as tensions between the US and China continue to escalate, with trade wars and geopolitical disagreements fueling the rift. China is the largest foreign holder of US Treasuries, with approximately $1.1 trillion in holdings as of June 2022. A reduction in these holdings could lead to increased borrowing costs for the US government and potentially weaken the dollar. The move would also reflect a broader shift in China's foreign exchange reserves, which have been declining in recent years. According to data from the US Department of the Treasury, China's holdings of US Treasuries have been steadily decreasing since 2019, with a notable drop of $10.4 billion in June 2022. This development highlights the complex and interconnected nature of global finance, where geopolitical tensions can have far-reaching consequences for international trade and economic stability.