Foreign demand for US debt hit

China fell behind Japan to become the second-biggest holder of US Treasuries in a sign the Chinese have been acting on recent complaints about US policy by unloading US debt. As one of the biggest creditors of the US, China has complained over the past year about US policies and worried publicly about the security of its dollar-denominated assets. China sold more than $34bn (£21.5bn) in short-and long-dated Treasuries in December, bringing its total holdings down to $755.4bn from $789.6bn in November, according to US. Treasury data released yesterday.