China has about $3 trillion in foreign exchange reserves, and has bought about 1 trillion in US Treasury bonds, which is less than 10% of all US Treasury bonds. It is the largest overseas holder of US Treasury bonds. Contrary to popular understanding, the largest creditors of US Treasury bonds are not China, but the US government and the Federal Reserve, which hold more than 45% of US Treasury bonds. The China administration is only the largest foreign creditor of American debt.