If China wanted to economically injure the U.S. by selling off its debt securities, the result could be dramatically higher interest rates and a steep dollar devaluation. But the Chinese would also shoot themselves in the foot. The Chinese have nearly half their cash reserves invested in U.S. debt Davidson. For China, it's the safest, best investment the growing nation can make. China's economic growth is fueled partly by the return on their U.S. investment. Poisoning the dollar would take the yuan right down with it.
Did you also know the volume of Chinese loans to the African public sector is large but surprisingly decreasing?
Top 10 Countries the U.S. Owes Money To https://people.howstuffworks.com/5-united-states-debt-holders.htm
New data provide insights on the scale and terms around this massive lending portfolio but raise questions about transparency, access, and voice in Africa-China relations.
China willing to play a constructive role in debt talks https://www.reuters.com/business/finance/china-willing-play-constructiv…
U.S. concerned about debt Pakistan owes China, official says https://www.swissinfo.ch/eng/reuters/u-s--concerned-about-debt-pakistan…