Latest data released by the US government reinforces China’s position as US’s biggest creditor as debt holding by the communist nation has jumped by 30%, revised estimates showed.

The US Treasury’s revised figure showed that Beijing’s holding of US debt stands at $1.16 trillion at the end of December 2010, $268 billion more than previously estimated.

The latest figures will ease concerns of America’s ability to fund its deficit, analysts believe.

Releasing the latest numbers, the treasury department said it changed its previous data since more accurate numbers came in.

In the earlier calculations, all purchases originating from a particular country were attributed to that nation without taking into account buyers’ location.

In the new estimates, buyers’ origin has been taken into account as opposed to the location where the purchases were made.

Previously analysts had suspected a trend of Chinese investor’s making purchases through the UK, but had difficulty proving it. Latest data confirms their suspicion.

“This provides the most substantive evidence to what has been previously suspected…that China has been increasingly transacting through the UK”, said Alan Ruskin – analyst with Deutsche Bank.

“It does suggest that there’s more commitment on the part of China to finance the US current account deficit”, he added.

However, “on the downside is the perception that the US is more beholden to the Chinese”, he opined.

UK has cut its US Treasury holding by $269 billion in December, in sync with US the latest data.