Treasury holdings 'reflect economic shifts'

Japan resumes place as largest US creditor, but China likely to favor dollar assets again

Japan has overtaken China as the largest foreign creditor of the United States, a development that reflects economic and policy changes in the world's three largest economies, experts said.

According to data from the US Treasury, private investors and official institutions in Japan held $1.2244 trillion in US government securities as of the end of February, narrowly exceeding the $1.2237 trillion held by China.