The central government has now reduced its US Treasuries portfolio by 5.4 billion US dollars to $1.15 trillion in January.
The US Treasury Department is now reporting that this is the third straight month of net selloffs, after the Chinese government's US debt holdings reached its peak last October of nearly 1.2-trillion US dollars.
Economist Lu Zhengwei says on its own, the cut in China's holding of US treasuries doesn't seem that much.
But he says when you compare the cut with the expansion of the Chinese government's ever-growing forex portfolio, it actually translates to a sharp decline.
The $1.15 trillion US dollars in US government debt accounts for about 40 percent of China's total forex holdings, which as of the end of last year, sits at $2.85 trillion US dollars, the largest forex reserve in the world.
