According to figures published by the US Treasury today (19 October), the Asian superpower opted to sell off $36.5 billion (Â£23.2 billion) in debt and bonds throughout August, the BBC reports.
This means China now holds around $1,137 billion in the country and this new decreased amount is down entirely to the fact the US had its rating reduced from triple A to A+ because of concerns over its budget deficits in the wake of the recession.
China's stance comes after other Asian nations such as Singapore and Taiwan also reduced their exposure to American problems.
Michael Woolfolk of BNY Mellon observed this is because they already have large US assets so can "afford to take a longer view".
Yesterday (18 October), it emerged that Chinese gross domestic product growth dipped during the third quarter of the year.
By Claire Archer