First you say dumping/selling bonds in inflationary then you say what comes next is deflationary. So in the end big whoop. I am not afraid, China is a BS country trying to act like it has it crap together egged on by vulture capitalists. I call it gloBULLism.
No, the rise in INTEREST rates by the reduction in bond prices is not inflationary. Typically, market interest rates are increased to REDUCE inflation.
And yes, the inter-connected nature of the economic system is a downside to globalism.