https://sg.finance.yahoo.com/news/japan-tops-china-largest-holder-210357229.html
In order to cut its foreign reserves losses, China has been selling its US bonds. However, this is more than meets eye. China is trying to shift its backbone support of renminbi to a basket of currencies instead of relying on USD only. In other words, China doesn't want the strength of RMB to be based on USD only. Furthermore, selling US bonds will thwart the rises in interest rates and impede RMB depreciation which is a win-win strategy for China.
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