Will China Pull the Plug on the Dollar?

China’s Dollar Dilemma: The Weapon It Can’t Use

Theatrics Over Threats

Every few years, as global tensions flare, media pundits regurgitate the same narrative: China will dump U.S. Treasuries!It’s a tempting headline—but it’s not just lazy journalism, it’s willful misdirection.

The truth? Beijing is holding a financial weapon it can’t afford to use.

China’s $900 billion in U.S. Treasury holdings may seem like leverage. But in reality, it’s a trap of their own making—a liquidity pool they need to survive the very system they claim to oppose. This is the paradox of the export empire: you can't threaten to torch the house when you're living in it.

The Dollar Is Still the World’s Master Key

Let’s start with this inconvenient truth: 80% of global trade transactions use the U.S. dollar. That includes trade that doesn’t even involve America. And 90% of foreign exchange transactions touch the greenback. The yuan? Less than 5%.

So, while China promotes yuan-based contracts through BRICS or denominates infrastructure loans in its own currency, none of it changes the bedrock of the global system. To walk away from the dollar would mean walking away from the system that props up their economy—and their authoritarian regime knows it.

Could they try to use their digital yuan as a workaround? Perhaps. But even that pipe dream requires trust—and globally, trust in the CCP’s transparency ranks somewhere between zero and fugazi.

Dumping Treasuries: Suicide By Spreadsheet

Let’s game this out.

If China offloads Treasuries en masse, what happens? Bond prices fall. Yields spike. China eats massive losses on their portfolio. Worse, they lose access to the deepest, most liquid capital market on Earth.

What replaces it? Gold? Bitcoin? Euro-denominated debt? Good luck.

Meanwhile, Washington would spin it into national security theater, rallying domestic industry and allies to “defend the dollar.” Remember, Trump doesn’t blink when adversaries bluff—he counters with tariffs, restrictions, and strategic jabs that force foes into economic contortions.

And let’s not forget the Fed. They can simply absorb the dumped Treasuries through quantitative easing 2.0—turning China’s attack into a liquidity gift for Wall Street.

In short, China’s supposed “nuclear option” is really a boomerang.

Why Beijing Would Rather Weaken the Yuan

If Xi Jinping wants leverage, there’s a better move: devalue the yuan. Make exports cheaper. Offset tariffs. Hurt U.S. manufacturing. Simple.

But even that’s not without risk. A weaker yuan invites capital flight—and that’s why Beijing clamps down on outbound money harder than it does dissent.

If China truly believed in de-dollarization, they’d act boldly. Instead, we get whispered threats and tightly choreographed moves designed for public consumption, not actual economic warfare.

This is geopolitical theater. And most Americans are watching without a program.

Prediction: China Stays Trapped in a System It Pretends to Oppose

The CCP won’t dump Treasuries. They won’t pull the plug on the dollar. They can’t.

But here’s the real warning: just because they won’t act doesn’t mean the system is safe.

What happens when this fragile symbiosis breaks not by intention, but by necessity? What happens when America’s debt load forces buyers like China to walk away—not in protest, but in default?

That’s the real black swan. And it’s closer than most think.

The Final Word: Control the Money or Be Controlled by It

While the elites play chess with national currencies, everyday citizens are left holding fiat promises that lose value by the hour.

You don’t need Beijing to collapse the dollar—Washington is doing it just fine.

If you're still holding your savings in fiat, waiting for central planners to act in your best interest, ask yourself: Do you trust a system where your enemy holds your debt?

The time to act isn’t when the crash comes—it’s before the game resets.

Take Action Now:

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Don’t wait for Beijing or Washington to make your next move. Make your own.