The Chinese hold a lot of USA paper, when do they start cashing it in?
When we let them.
Not any time soon.
As their currency value goes down those dollar based holdings are looking good.
And, and this is a big AND,
They are trying to devalue their currency relative to the dollar so they are more competitive. If they sale US treasury notes en masse it will lower the value of the dollar negating their currency devaluation making them less competitive. They are in a box. And so are we I might add...
We can pay the $1.2 Trillion we owe them with fake money tomorrow. Do they really want our fake money, it is as worthless as theirs.
If a Republican is elected president, I fully expect Yellen to start yelling about interest rate hikes.
They can just sell them on the open market.
Or they can wait until they mature and the can get paper dollars for their bonds...