If they do that, they can kiss 75-90% of their exports goodbye.
It is politics, and Congress is ignorant. If we stop buying from China people will have to pay more for nearly all commodities, and that will stifle our spending. Can you imagine that?
The dollar is about 5% down to the RMB from a year ago, and shows no signs of stopping. As China develops and the dollar continues to weaken we will buy less imports. Add to that the VAT reduction we just had and may have again before years end, China may start selling those bonds off anyway.
Either way, China US interdependence is fading, and it’s only a matter of time before we stop buying goods, they stop buying dollars, we both go to war and blow the entire planet up.