5 Countries That Own the Most U.S. Debt

2. China

Total holdings of U.S. treasury securities (in billions): $859.4

Despite political tensions between China and the U.S., China is still a major holder of U.S. debt, even though it has declined from an all-time high of $1.3 trillion in 2013. China started purchasing U.S. debt back in 2000 after the latter endorsed the former’s entry into the World Trade Organization, leading to a trade boom. If a U.S. debt default happens, China’s already struggling economy post Covid-19 might be in major trouble.