This is flawed. The reason China can issue USD bonds at such a low premium is that it holds huge amounts of US govt bonds. it is not really replacing the US.

This is flawed. The reason China can issue USD bonds at such a low premium is that it holds huge amounts of US govt bonds. it is not really replacing the US. Eurodollar deposits and the like which have existed since the cold war and represent a similar loss of control by the US over USD financial markets. Its more of a sign of the continued dominance of the currency than anything else.