I continue to be surprised how otherwise seemingly intelligent people can view the holding of American debt by China to be a Chinese advantage in any future conflict.
Perhaps such people are suffering from a mild case of Logo-Realism, causing them to confuse financial paper with real wealth. By taking on a lot of American debt and paper money, China in effect locates that portion of their treasury, the wealth denoted by that paper, in the USA. That would seem to be an advantage for the USA, not China.
It’s also amusing to see discussions in this regard about how much damage China could do the American economy by withholding its cheap manufacturing. Well, yes. But normally in war, one considers what both sides could do to each other. The USA could, with some moderate pain, switch its outsourced manufacturing base to a number of other nations (Philiphines, Vietnam, India, Indonesia, etc.). Where would China go for technology imports and a big export market? The ChiComs wouldn’t last in power more than 6 months if the USA simply canceled their treasury notes and blockaded the coast. It might cost us a trillion or two, but we would recover. The ChiComs would be gone, as likely would China as well, devolved into a set of fueding states racing to suck up to the USA to get preferential trade access.
But this is, of course, a piece with the standard complaints about American assertiveness, that only costs to the USA are counted, enemies presumed for some unexplained reason to be immune to the laws of economics. Just like a bad Star Trek episode and only slightly more realistic.