China increased its holdings of U.S. bonds, notes and bills to $1.2 trillion in August, data from the U.S. Treasury showed Oct. 17.
This marked the highest level since July 2016 and the seventh straight month that China increased its U.S. Treasurys holdings.
China is the largest non-U.S. holder of Treasurys, having added nearly $150 billion in U.S. debt since January, said a Reuters report.
Japan ranks second with $1.1 trillion.
The two countries accounted for more than a third of all foreign ownership of Treasurys, which gained $19.4 billion to $6.27 trillion in August, Bloomberg News said.
China's foreign exchange reserves increased for an eighth month to $3.11 trillion in September. The country's capital outflows have eased amid tighter curbs, which helped the yuan gain as much as 8% against the dollar in 2017 from a loss of 6.5% in 2016.