Can't see a big collapso coming, cc. China has little choice but to keep its t-bills and to buy more. Let's say the Chinese try to sell some t-bills. How much would that drive down the value of their remaining $1.9 trillion in t-bills?
USA collapso would also spell doom for the Chinese manufacturing sector and imperil the survival of the government.
One day, when it is able to stand on its own two feet, the Peoples Republic will cut the USA loose, but that day is a long way off yet.
What China is doing instead to secure its economic future is, as you have no doubt already noticed, is to buy up foreign resource assets. The value of these will eventually dwarf any potential losses on the t-bills.
