All of it is a red herring and not worth the time to debate it. People are wasting their time with that talk. "OH my! OH MY! They are going to stop buying treasuries! We're all doomed! Run for the hills!" Total BS.
The real issue is the regional economic impact in Asia and how this fund deploys this money. Over time it can be an issue.
Also the energy sector should be on the lookout as well. How the money is deployed there is another thing to watch. keep in mind though the US isn't likely to be displaced anytime soon. Exxon had a $40 billion dollar profit alone last year. None the less, its something to watch.
Like I said, its all about influence.
I read your analysis above and concur completely.
The Chinese sometimes remind me of a fellow sitting at the table in a high stakes poker game holding a pair of duces and thinking they are going to win the hand.
In that case, it is more likely, as you argued, that they will use the money as a political leverage, just as Russia is using their energy supply.
I am sure they want to make money in the process as well. However, their deployment of money would significantly factor in political consideration. That would be an interesting development.