The Chinese action in the South Pacific recently against our Naval ship is connected with this story. The Chinese, I believe, were trying to send a message to Washington: “Don’t devalue the Dollar or else.” China is subtly trying to use the threat of military action to keep Washington in line. If the Dollar tanks and China loses these assets, there will be no incentive for them to remain at peace with us.
I’m not worried about a military threat.
They’ll use the finacial one for sure though.