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).
Which countries are most in debt to USA? ›
Top 20 Countries that Owe the US Money
- Bermuda.
- Germany.
- Norway.
- Korea.
- Saudi Arabia.
- France.
- Singapore.
- Brazil.
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.
Which country is the top foreign owner of the US national debt? ›
Including private investors and governments, the top three estimated foreign holders of federal debt by country, as of December 2023, are Japan ($1.1 trillion), China ($0.8 trillion), and the United Kingdom ($0.7 trillion).
How much does America owe China? ›
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.
Who owes the US the most money? ›
Nearly half of all US foreign-owned debt comes from five countries.
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 rows
How much US debt does Russia own? ›
2019 due to Russia & China selling their Treasury bonds? According to the US Treasury, Russian ownership of US Treasuries was $2.1 Billion in Nov 2022. That's so small an amount it might as well be zero.
Who are the top 4 owners of U.S. debt? ›
Top Foreign Owners of US National Debt
- Japan. $1,153.1. 14.37%
- China. $797.7. 9.94%
- United Kingdom. $753.5. 9.39%
- Luxembourg. $376.5. 4.69%
- Canada. $339.8. 4.23%
What country owns the US the most money? ›
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
What country owns most of the United States? ›
Which countries own the most land in the U.S.?
- CANADA. 31%
- Other. 28%
- NETHERLANDS. 12%
- ITALY. 7%
- UNITED KINGDOM. 6%
- GERMANY. 6%
- PORTUGAL. 3.6%
- FRANCE. 3.2%
Since the U.S. dollar has a variable exchange rate, however, any sale by any nation holding huge U.S. debt or dollar reserves will trigger the adjustment of the trade balance at the international level. The offloaded U.S. reserves by China will either end up with another nation or will return back to the U.S.
Why is the US in so much debt? ›
One of the main culprits is consistently overspending. When the federal government spends more than its budget, it creates a deficit. In the fiscal year of 2023, it spent about $381 billion more than it collected in revenues. To pay that deficit, the government borrows money.
Who does the US owe 34 trillion to? ›
The national debt is the total amount of money the U.S. owes its creditors, which includes “the public” (individual investors, businesses, commercial banks, pension funds, mutual funds, state and local governments, the Federal Reserve System and foreign governments) as well as other parts of the federal government, ...
Which country has the highest debt in the world? ›
Japan has the highest percentage of national debt in the world at 259.43% of its annual GDP.
Where does most of the U.S. debt come from? ›
Many people believe that much of the U.S. national debt is owed to foreign countries like China and Japan, but the truth is that most of it is owed to Social Security and pension funds right here in the U.S. This means that U.S. citizens own most of the national debt.
Why USA has the highest debt? ›
One of the main culprits is consistently overspending. When the federal government spends more than its budget, it creates a deficit. In the fiscal year of 2023, it spent about $381 billion more than it collected in revenues. To pay that deficit, the government borrows money.
What are the top sources of debt in the US? ›
Total balance (2023 Q4)
Mortgage debt is most Americans' largest debt, exceeding other types by a wide margin. Student loans are the next largest type of debt among those listed in the data, followed closely by auto loans.