[Jim Noble]

if the Chinese dumped U.S. debt on the global market, their own holdings of U.S. debt would decline in value, the U.S. economy would be damaged, ultimately harming the Chinese economy by reducing American ability to buy more Chinese goods.

You know what?

I don't think they care about that AT ALL.

[KarlInOhio]

The potential of a Chinese threat of dumping our bonds and crashing our economy is still very effective as a threat, much as nuclear weapons can be a more effective threat than when actually used.

If we were to threaten to apply a tarriff to Chinese import, they can threaten to dump their bonds and the tarriff goes away.

If we complain about Chinese economic moves in Africa, they can threaten to dump their bonds and the complaints are silenced.

If China decides to invade Taiwan, they threaten to dump our bonds and suddenly we can't get the Navy there in time to do anything.