US bonds reduction normal

China has cut its holding of US Treasury bonds by $25 billion to $776 billion at the end of June compared with the previous month, according to a report released by the US Treasury Department on Aug 17. It was considered the first large-scale reduction of US debt by China this year.

During the same period, Japan and the United Kingdom went in the other direction. Japan, the second-largest holder of US Treasury bonds, raised its holdings to $712 billion in June from $677 billion in May, an increase of $35 billion. The UK, the third-largest holder, also increased its stakes to $214 billion in June from $164 billion, a surge of 31 percent. China remains the largest holder of US treasuries, followed by Japan and the UK.

It's obvious that whether to add or cut US treasuries depends on a central government's judgment of expectation toward the global financial market. So there is no need to politicize the behavior that is no more than a normal investment.