Another key issue of the US economy is the U.S.'s dependence on foreign investment to help fund its debt. As of August 2024, China remains the second largest foreign holder of U.S. debt. However China has significantly dropped its holding to approximately $770 billion, a 39% decline compared to less than a decade ago. This shift is tied to broader geopolitical and economic changes, raising concerns about the stability of foreign funding and its potential effects on U.S. economic policy.