The Fed can trivially replace China's US debt holdings, just as they could with Japan if needed. They can run a $50 billion per month QE program - starting at a

The Fed can trivially replace China's US debt holdings, just as they could with Japan if needed. They can run a $50 billion per month QE program - starting at any time - and permanently, calmly remove China from the equation and the US dollar would hardly notice. US households are sitting on $110 trillion in wealth for comparison to what a $1 trillion debasement by the Fed actually means (and that ignores the dollars outside the US). China's holdings are typically around ~5% of US national debt and declining (eight to ten years out, it will be 2.5% to 3% if nothing else changes; ie increasingly meaningless). It's ideal for all US debt to be held domestically if only to remove this constant absurdity that people fall for, the propaganda that China (or the Saudis et al) could do anything to injure the US using their very modest treasury holdings. So far the US hasn't actually done anything drastic with tariffs, even with regards to China. Mostly what Trump has done is use it as a bluff to get concessions, and that's mostly all that he will do. China may be the exception, as necessary. That may be warranted, the US should match China's barriers if China doesn't start opening up fair access & treatment re their economy.