Home/Economy/Articles/Which countries own the most US debt?
The US government owes trillions of dollars in debt to foreign entities, including governments, central banks, companies, and individual investors.
This debt includes US Treasury bonds and other securities, which are popular as they are considered safe investments.
Many nations buy US Treasury securities (also called “Treasurys”) because they are considered one of the safest investment options available.
How much US debt do foreign countries own?
As of January 2023, foreign countries own $7.4 trillion in Treasurys — or roughly 24% of total US debt.[1] Over the past two decades, central banks and other government entities have owned 50-75% of foreign-owned debt.[2] Independent investors and companies held the rest.
In 2000, $1.7 trillion[3] or 18% of total debt was foreign-owned. This grew to $7.7 trillion in 2014, or 34% — the highest percentage in US history.
Early in the pandemic, foreign ownership of US debt fell as countries such as Saudi Arabia, China, and Brazil sold their shares of US Treasurys for short-term capital. Though foreign countries resumed buying foreign debt by the end of 2020, total foreign-owned debt has fallen since.
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Which countries hold the most US debt?
Over the past 20 years, Japan and China have owned more US Treasurys than any other foreign nation.
Between 2000 and 2022, Japan grew from owning $534 billion to just over $1 trillion, while China’s ownership grew from $101 billion to $855 billion.
Japan and China held almost 50% of all foreign-owned US debt between 2004 and 2006. However, this has declined over time, and as of 2022 they controlled approximately 25% of foreign-owned debt.
| Country/territory | US foreign-owned debt (January 2023) |
| Japan | $1,104,400,000,000 |
| China | $859,400,000,000 |
| United Kingdom | $668,300,000,000 |
| Belgium | $331,100,000,000 |
| Luxembourg | $318,200,000,000 |
| Switzerland | $290,500,000,000 |
| The Cayman Islands | $285,300,000,000 |
| Canada | $254,100,000,000 |
| Ireland | $253,400,000,000 |
| Taiwan | $234,600,000,000 |
As of January 2023, the five countries owning the most US debt are Japan ($1.1 trillion), China ($859 billion), the United Kingdom ($668 billion), Belgium ($331 billion), and Luxembourg ($318 billion).
Investors from Russia, China, and Indonesia had sharp drops in US Treasurys over the last several years due to sanctions and short-term capital needs, among other reasons.
Today, most foreign investors own more US debt than they did a decade ago.
What types of debt do foreign countries hold?
The US offers two main types of debt: public and intragovernmental. Public debt is sold as Treasury bonds, bills, and notes to outside investors, including foreign governments. It funds various government activities and pays off older debts. Intragovernmental debt, on the other hand, is what the government owes to its own programs, like Social Security, Medicare, retirement funds, and more.
Foreign governments primarily purchase public debt because it's marketable and can be resold. In contrast, intragovernmental debt is mainly controlled by the US government, and isn't traded on the open market.
Why do foreign countries buy US debt?
Foreign investors buy US Treasury securities because they're among the world's most secure assets.
The US government's commitment to timely debt repayment, especially during economic uncertainty, makes Treasuries a staple in many foreign monetary policies.
Holding a significant amount of US dollars can be advantageous because it is a widely accepted currency in international trade and transactions. Owning US Treasury securities can provide further benefits such as portfolio diversification, as well as a higher rate of return compared to other government bonds available worldwide.
For a full picture of the US economy, read more about the nation’s rising national debt and the strength of the dollar. Get the data directly in your inbox by signing up for our newsletter.
Portfolio Holdings of U.S. and Foreign Securities
Foreign Demand for US Treasury Securities during the Pandemic.
Last updated
January 28, 2022
- [1]
Total debt includes public and intragovernmental debt.
- [2]
International organizations and foreign government investment funds are also included in this category.
- [3]
All figures in this article are adjusted for inflation based on 2022 calendar year dollars.
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FAQs
Nearly half of all US foreign-owned debt comes from five countries. All values are adjusted to 2023 dollars. As of January 2023, the five countries owning the most US debt are Japan ($1.1 trillion), China ($859 billion), the United Kingdom ($668 billion), Belgium ($331 billion), and Luxembourg ($318 billion).
Who owns the majority of US debt? ›
The major international owners of US debt include Japan ($1.1T), China, UK, Belgium, Switzerland, Cayman Islands and smaller amounts from the rest of the world. After the recent weak treasury auction, US government officials warned that they are seeing waning demand from international buyers.
How much US debt does Russia own? ›
According to the US Treasury, Russian ownership of US Treasuries was $2.1 Billion in Nov 2022.
What country owns the most debt in the world? ›
Japan. Japan has the highest percentage of national debt in the world at 259.43% of its annual GDP.
How much of US debt does China own? ›
China is one of the United States's largest creditors, owning about $859.4 billion in U.S. debt. 1 However, it does not own the most U.S. debt of any foreign country. Nations borrowing from each other may be as old as the concept of money.
Who are the top 4 owners of US debt? ›
Japan and China have been the largest foreign holders of US debt for the last two decades.
| Country/territory | US foreign-owned debt (January 2023) |
|---|
| Japan | $1,104,400,000,000 |
| China | $859,400,000,000 |
| United Kingdom | $668,300,000,000 |
| Belgium | $331,100,000,000 |
6 more rowsTop 20 Countries that Owe the US Money
- Bermuda. Total Debt Held: $77.4 Billion. ...
- Germany. Total Debt Held: $91.3 Billion. ...
- Norway. Total Debt Held: $104.4 Billion. ...
- Korea. Total Debt Held: $105.8 Billion. ...
- Saudi Arabia. Total Debt Held: $111 Billion. ...
- France. Total Debt Held: $183.9 Billion. ...
- Singapore. ...
- Brazil.
Top Foreign Holders of U.S. Debt
| Rank | Country | U.S. Treasury Holdings |
|---|
| 1 | 🇯🇵 Japan | $1,076B |
| 2 | 🇨🇳 China | $867B |
| 3 | 🇬🇧 United Kingdom | $655B |
| 4 | 🇧🇪 Belgium | $354B |
35 more rowsMar 24, 2023
Under current policy, the United States has about 20 years for corrective action after which no amount of future tax increases or spending cuts could avoid the government defaulting on its debt whether explicitly or implicitly (i.e., debt monetization producing significant inflation).
How is the US the richest country with so much debt? ›
It began rising at a fast rate in the 1980's and was accelerated through events like the Iraq Wars and the 2008 Great Recession. Most recently, the debt made another big jump thanks to the pandemic with the federal government spending significantly more than it took in to keep the country running.
An excess supply of U.S. dollars would lead to a decline in USD rates, making RMB valuations higher. It would increase the cost of Chinese products, making them lose their competitive price advantage. China may not be willing to do that, as it makes little economic sense.
Why is the US in so much debt? ›
The debt grew steadily into the 20th century and was roughly $22 billion after the country financed its involvement in World War I. Notable recent events triggering large spikes in the debt include the Afghanistan and Iraq Wars, the 2008 Great Recession, and the COVID-19 pandemic.
Where does China own land in the US? ›
China owns 384,000 acres of American agricultural land. That's a 30% increase just since 2019. And on top of that, they own land near an air force base in North Dakota.
Who is the largest holder of American debt? ›
- Japan. Japan held $1.187 trillion in Treasury securities as of March 2024, beating out China as the largest foreign holder of U.S. debt. ...
- China. China gets a lot of attention for holding a big chunk of the U.S. government's debt. ...
- The United Kingdom. ...
- Luxembourg. ...
- Canada.
The public owes 74 percent of the current federal debt. Intragovernmental debt accounts for 26 percent or $5.9 trillion. The public includes foreign investors and foreign governments. These two groups account for 30 percent of the debt.
Why does America owe Japan so much money? ›
Why does the US owe so much debt to Japan? Because this has been an industrial policy of Japan and America, to give Japan the access to US market, and Japan to actively encourage lower yen, so to export to US at cheaper price.
Who paid off all of America's debt? ›
1837: Andrew Jackson
(In 1835, the $17.9 million budget surplus was greater than the total government expenses for that year.) By January of 1835, for the first and only time, all of the government's interest-bearing debt was paid off.
