China Strikes Back: Dumps $8.2B in US Treasuries as BRICS Flexes Financial Muscle

Beijing just fired a $8.2 billion warning shot across the dollar's bow—and Wall Street's scrambling to adjust its risk models.

The de-dollarization playbook gets real

China's Treasury dump isn't just another balance sheet adjustment—it's a coordinated BRICS power move that's shaking the foundation of traditional reserve currencies. The timing? Impeccable, as always.

When elephants fight, the grass gets trampled

While DC analysts hyperventilate over 'currency manipulation,' crypto markets are quietly absorbing the liquidity shift—because decentralized assets don't care about political posturing. Another day, another reason to hedge with hard-capped digital stores of value.

Funny how 'risk-free' assets keep looking riskier these days—almost like the whole fiat system runs on institutionalized hopium.

BRICS: China Cutting Ties With US Dollar Treasuries, Bonds

Data shows that BRICS member China held $1,350 billion worth of US dollar Treasuries and bonds in FY 2012-13. However, the holdings are now down to $757 billion in April 2025, which is a decline of approximately 44%. That’s a steep sell-off in just 13 years and $273 billion worth of Treasury assets have been erased from the Chinese central banks.

If many BRICS countries and other developing nations start to follow in China’s footsteps by dumping dollar bonds and Treasuries, the US will find it harder to fund its deficit. China is currently the third-largest holder of US Treasury debt and things could get serious if the sell-off occurs regularly. It is only behind Japan and the United Kingdom which hold the top two positions on the dollar-denominated debt.

BRICS memberXi Junyang, professor at the Shanghai University to the Global Times on Thursday. He noted that the sell-off could occur regularly as China has been dumping Treasuries very strongly since 2022.