Oh they won’t refund foreign investors, I agree there.
But they will have to find the cash somewhere, either by printing themselves into huge inflation or by borrowing more from world banks, or by selling Western debt.
I think they will do a combination.
Could that be the reason for the trillions of US borrowing…to buy back US debt from China at a discount?
It’s my understanding that China has 2 currencies, one that Chinese Citizens get paid in and one that is convertible they use to trade with other countries...
The internal currency is worth whatever China says it is, so their citizens are captive so long as they are made whole, their citizens will be fine...
Foreign investors will get screwed....
China is basically waging war with the USA and other western countries, thru unfair trade practices, shipping fentanyl around the world, creating bioweapons like Covid and now thru destabilizing world financial markets....
To me this is just another move on their part to advance their agenda....