Fact Check: The U.S. has borrowed billions of dollars from China.

The Claim: "The U.S. has borrowed billions of dollars from China."

Introduction

The assertion that the United States has borrowed billions of dollars from China refers to the significant amount of U.S. Treasury securities held by the Chinese government. This claim is often cited in discussions about U.S. national debt and foreign ownership of that debt. However, the specifics of how much debt China holds, how that figure has changed over time, and the implications of this borrowing are complex and warrant careful examination.

What We Know

1. As of early 2024, the total federal government debt of the United States stands at approximately $34.4 trillion 1.
2. Foreign ownership of U.S. debt has fluctuated significantly over the years. In 2000, foreign entities held about $1.8 trillion (17.9% of total debt), which increased to $8.0 trillion (33.9% of total debt) by 2014 2.
3. As of May 2023, China held approximately $859 billion in U.S. debt, making it the second-largest foreign holder after Japan, which held about $1.1 trillion 35.
4. China's holdings of U.S. debt have decreased over the past decade, with reports indicating a decline of about $600 billion from 2016 to 2023 6.
5. The U.S. Department of the Treasury has changed its measurement methods over the years, which complicates direct comparisons of debt ownership across different time periods 9.

Analysis

The claim that the U.S. has borrowed billions from China is substantiated by the data showing that China indeed holds a significant amount of U.S. Treasury securities. However, the context and implications of this borrowing require a nuanced understanding.

• Source Reliability:

  • Wikipedia is often a starting point for information but should be approached with caution due to its open-editing nature. The data cited is generally backed by reliable sources, but verification from primary sources is advisable 1.
  • USAFacts provides a straightforward analysis of U.S. debt ownership and is considered a reliable source for statistical data 2.
  • Marketplace is a reputable news outlet that offers insights into economic issues, making it a credible source for understanding who holds U.S. debt 3.
  • Investopedia is known for financial education and analysis, but it may have a slight bias towards presenting information in a way that is accessible to the general public 5.
  • The Conversation provides academic perspectives but may reflect the biases of its contributors 6.
  • The Balance and Visual Capitalist are generally reliable for financial information but should be cross-referenced with more primary sources for accuracy 910.

• Conflicts of Interest: Some sources may have underlying agendas, particularly those that focus on economic policy or political narratives. For instance, articles emphasizing the risks of foreign debt may be influenced by political perspectives regarding national security.

• Methodology: The methodologies used to measure and report U.S. debt ownership can vary, leading to discrepancies in reported figures. For example, changes in how the Treasury Department categorizes foreign ownership can impact the perceived amount of debt held by countries like China 9.

• Contradicting Evidence: While the claim that the U.S. has borrowed billions from China is supported by data, it is essential to note that China's holdings have been decreasing, which could suggest a shift in investment strategy or economic policy 6. Furthermore, Japan has overtaken China as the largest holder of U.S. debt in recent years, indicating a dynamic landscape in foreign debt ownership 3.

Conclusion

Verdict: True

The claim that the U.S. has borrowed billions of dollars from China is substantiated by evidence indicating that China holds approximately $859 billion in U.S. Treasury securities as of May 2023. This figure confirms that the U.S. has indeed borrowed a substantial amount from China, making the assertion accurate.

However, it is important to contextualize this borrowing within the broader landscape of U.S. debt. China's holdings have decreased over the past decade, suggesting a potential shift in its investment strategy. Additionally, Japan has recently surpassed China as the largest foreign holder of U.S. debt, indicating that the dynamics of foreign debt ownership are continually evolving.

While the data supporting this claim is reliable, it is essential to acknowledge the limitations in the available evidence. Variations in reporting methodologies and the potential for conflicting interpretations of the data can complicate a straightforward understanding of the situation. Readers are encouraged to critically evaluate information and consider multiple sources when assessing claims related to national debt and foreign ownership.

Sources

1. National debt of the United States. (2024). Retrieved from Wikipedia
2. Which countries own the most US debt? (2024). Retrieved from USAFacts
3. Who does the U.S. owe $31.4 trillion? (2023). Retrieved from Marketplace
4. The Federal Government Has Borrowed Trillions. Who Owns All that Debt? (2023). Retrieved from PGPF
5. How Much U.S. Debt Does China Own? (2023). Retrieved from Investopedia
6. U.S. national debt is its Achilles' heel, but China sees it as an opportunity. (2023). Retrieved from The Conversation
7. How Much Does China Owe the US? A Comprehensive Analysis of Debt. (2023). Retrieved from The Money Know How
8. How does US debt rank compared with the rest of the world? (2023). Retrieved from Al Jazeera
9. U.S. Debt to China: How Much Is It and Why? (2023). Retrieved from The Balance
10. Ranked: The Top 20 Countries Holding the Most U.S. Debt. (2025). Retrieved from Visual Capitalist