us treasuries: biggest weekly loss since 1987, page-18

Hi SiameseP -- China would rarely broadcast such accusations -- they will simply find another way to get even/gain the upper hand - they do not like any loss of 'face,' and accusations like this are just that.

You are correct -- they hold tonnes of US paper -- but they are more than likely to switch their accumulation programme away from paper and into commodities.
Lets face it, China rarely follows short-term strategies, there are no elections, just a continuation of Party Policy, with a planned succession.
They are in for the long haul, and today, all the commodities are as cheap as chips. I would not be surprised if they are already accumulating some of the most valuable ones.

cheers