A Chinese trade delegation signed agreements with US grain companies on Wednesday to buy 8.62 million metric tons of soybeans from the United States and will ink more deals on Thursday for a record-setting purchase topping 12 million metric tons.
Visiting Vice-President Xi Jinping encouraged more Chinese companies to invest in Iowa and the US Midwest.
The reduction came as China continues to diversify its foreign-exchange reserves and indicates a growing interest in moving into euro assets.
The Treasury International Capital System data shows China cut its holdings by $31.9 billion to $1.1 trillion.
Dinner for Vice-President Xi Jinping in Iowa draws top US officials to bolster trade.
Doug Guthrie, dean and professor at George Washington University's international business school, is an expert on economic reform in China, not politics.
Xi called on US to adjust its economic policies and structure and remove restrictions on exports to China to address the trade imbalance.
A how-to website that guides Chinese investors on doing business in the United States was launched on Monday.
Iowa expects Xi Jinping's ongoing visit to the country will promote the state's agricultural exports.
How the yuan appreciation would affect foreign companies that are listed on the world stock markets has not been discussed much.
Chinese Vice-President Xi Jinping's visit to Los Angeles is expected to bring the US Pacific gateway even closer to China.
Wal-Mart Stores Inc, branded as Walmart, expects its China business to grow faster in the current robust market conditions.