Many market commentators and conspiracy theorists are postulating that China might dump its rather significant holdings of US Treasuries as revenge for trade tariffs.
The chart below shows the amount of Treasuries held by foreign countries at present.
$1.22 Trillion. These Treasuries came into being as a result of China's export income from international trade with America. It represents the dollarised monetarization of decades of imports from China.
The Chinese have sent real goods and services to America and are happy to save the income as dollars.
The thousands of businesses that export to America