It is well known that China is the biggest holder of US Treasury securities. That is why it has also been quite vocal about the expansionary policies of the US Fed. Plus it has questioned the status of the US dollar as the world's reserve currency. Despite this, China's holdings of US Treasury securities rose to a record in May 2013. One reason for this has been that other foreign investors have been selling their holdings. For instance, Japan, the second-largest holder, cut its holdings to US$ 1.1 trillion. The other reason could be that the Chinese central bank wants to take advantage of high yielding Treasuries for longer term duration. It must be noted that the US Fed's possible tapering of its bond purchase program has pushed up the yields on the 10-Year Treasury note. The dollar has also rallied against other currencies. Consequently, as per an article on Moneynews, China's holdings increased by US$ 25.2 bn to US$ 1.3 trillion according to Treasury Department da ta. Whether this augurs well for China going forward remains to be seen.