China Growth Stocks

[Andrew26]

Ok, China has around 2,5-3T of US bonds and it keeps rising and rising. What a threat to US... or not? I guess not, at least not for now.

Imagine this: their export is so high only because of the price, they absolutely cant fight the world economy with with either quality/innovation or productivity, thats nonsense. So only price left. Their two most important exporting places are EU and US. They already have huge problems holding yuan on the peg set against USD (its very expensive for the government for now but the real costs will hold future generations and it wont be nice) and now imagine that they try to destroy dollar. It would tank and now what with the peg - they cant even hold it here, not to mention if dollar goes down. They would either have to subsidize exporters even more (in reality it would be not possible) or the yuan would have to appreciate. Terms of trade would go up and it would destroy their main engine of their economy. And now even imagine that eurozone, their most important market on the world for China, goes to deeper problems with the currency and weakens more against the USD, making Chinese export even more expensive there.

You still think China holds any wild card with US bonds?