China holds $772 billion in US debt, but US still dominates global markets

From Investing.com: 2024-12-20 02:13:00

The total US debt at the end of the 3rd quarter is $35.5 trillion, with $28.3 trillion held by the public and $8.7 trillion held by foreign investors. China owns about $772 billion in US debt, which is 2.2% of the total outstanding debt. The average daily trading volume in the US treasury market is $879 billion, higher than China’s total US debt holdings. Despite concerns of China selling all debt at once, it would not lead to financial armageddon. The US still dominates global markets with 65% of the world’s stock market and the world’s reserve currency.

The US has the best run companies in the world, best financial markets, and a resilient economy. However, annual budget deficits have been over a trillion dollars for the past 5 years, with a 2024 deficit of $1.83 trillion. Interest payments for 2024 were $882 billion, reaching 2.4% of GDP. The rise in interest rates has made financing deficits more costly. Despite these challenges, the US still outperforms the rest of the world economically, with no real alternative for investors.



Read more at Investing.com: Does China Really Own the US?