I would not overestimate importance of the dollar for the Chinese. Those dollar holdings are a simple by-product of past currency interventions, a way to park t

I would not overestimate importance of the dollar for the Chinese. Those dollar holdings are a simple by-product of past currency interventions, a way to park those dollars bought from exporters of electronic goods etc, not a conscious choice to invest some 'savings' in the US. Also, China's trade with US is less than its combined trade with countries of Pacific Region. Also, I would not agree with your characterisation of China and its regime. Its current government has been doing wonders lifting hundreds of millions of people out of poverty, and cases of corruption unfortunately happen everywhere -- from Chicago to Shanghai. They do have a bit different social organization, but its current modification seems to work for them for the past thirty years.