I think they both have each other by the short and curlies
without china - the US is more deeply in the poo than it would otherwise be.
without the US buying chinese goodies - a lot of chinese export would not happen, so china would suffer.
But as far as the money owing - I think that is definitely more problem for the chinese than the yanks, if it came to default. I don't think it will, but you never know.
Even without default, the chinese have a problem. As the buck gets worth less, the dollars the chinese have are worth less and also the bucks they are owed are worth less -- both chinese problems.
Perhaps they can come to a trade off - give them Connecticut or something :)
