1. Cut off all trade with China until they vacate those so-called islands.
2.Freeze all Chinese assets in the US (including real estate) until they vacate those so-called islands.
If the US could get Europe and free Asia to go along, that would make it even better.
Of Course, China could retaliate by seizing all US assets in China. So then we'd all be using older IPhones for awhile. It could get a bit uncomfortable for consumers.
We pay enough in interest alone to China every year to cover their entire defense budget.
And none of that reduces the principal we owe them.
(Yeah, the national debt matters. Deficit spending matters.)
I have no doubt Trump might think of doing that even though the effect it would have on U.S. economy and U.S. companies and consumers would be catastrophic.
If the US could get Europe and free Asia to go along, that would make it even better.
You're basically calling for a war with China and you expect the rest of the world to join in? Seriously?