American investors hold billions in debt from China, Saudi Arabia and South Africa as global holdings surpass $4 trillion

The US Department of the Treasury revealed that American holdings of foreign debt securities reached $4.03 trillion at the end of 2025, nearly $300 billion higher than a year earlier, as investors continued to hold bonds issued across international markets.

The findings, published on October 30, 2026, provide a picture of how governments and businesses outside the United States depend on international investors to raise money, finance projects and meet existing financial obligations.

Unlike direct government loans, these investments involve bonds and other debt securities purchased by American investors, who receive interest and repayment under agreed terms.

Canada led the countries whose debt securities were held by American investors, with holdings valued at $606 billion, followed by the Cayman Islands at $566 billion and the United Kingdom at $465 billion.

France, Japan and Australia also featured among the largest markets for American debt investment, reflecting the wide geographical reach of US capital.

The Cayman Islands’ position is partly linked to its role as an international financial centre, where investment funds and companies register securities that may finance activities in other countries.

China presents a different picture because it is both a holder of American government debt and a market for US investors buying foreign securities.

According to Treasury records, China held $684.4 billion in US government debt at the end of 2025, compared with $18 billion in Chinese debt securities owned by American investors.

The difference reflects the much larger value of US government bonds held by Chinese investors, while American investments in China also include company shares.

When those shares are included, total American portfolio investments in mainland China reached $318 billion.

Outside the largest global markets, American investors also held billions in debt securities issued by governments and businesses across Africa and the Middle East.

Israel, the United Arab Emirates and Saudi Arabia accounted for a combined $50.66 billion in American-held debt securities at the end of 2025.

Saudi Arabia, the Middle East’s largest Arab economy, recorded $15.48 billion in US-held debt securities, comprising $14.30 billion in long-term bonds and $1.18 billion in short-term instruments.

Israel accounted for $18.24 billion, while the United Arab Emirates followed with $16.94 billion, including $12.11 billion in long-term debt and $4.83 billion in short-term securities.

In Africa, South Africa, Egypt and Nigeria recorded combined US-held debt securities worth $37.78 billion at the end of 2025, up from $26.49 billion the previous year.

South Africa accounted for more than half of the total at $21.22 billion, including $19.98 billion in long-term debt and $1.24 billion in short-term securities.

Egypt followed with $9.64 billion, comprising $7.91 billion in long-term debt and $1.73 billion in short-term instruments, while Nigeria recorded $6.92 billion, including $4.73 billion in long-term debt and $2.19 billion in short-term securities.

Together, the three economies recorded an $11.29 billion increase in the value of American-held debt securities in 2025, representing growth of 42.6% from the previous year.

The Treasury’s broader survey showed that American overseas portfolio investments reached $19.26 trillion at the end of 2025, compared with $15.82 trillion in 2024.

Most of the money was invested in foreign company shares, which accounted for $15.23 trillion, while bonds and other debt securities made up the remaining $4.03 trillion.

The report, prepared with the Federal Reserve Bank of New York and the Federal Reserve Board, measures investments at market value, meaning changes can reflect trading activity and price movements as well as new purchases.