China, like all other communist dictatorships, has no problem seizing foreign assets it deems essential to its security. Debt is only valid as long as both parties acknowledge it. If the debtor decides that giving ownership of an asset to China is hostile to that country's best interests, it can simply refuse to honor the debt.
Then what? China seizes the property by force? Downgrades the debtor's credit rating? Sends them a nastygram or makes repeated phone calls?