China Is in Default on a Trillion Dollars in Debt to US Bondholders. Will the US Force Repayment?

Now that the relationship with China has soured and the People’s Republic of China has become the greatest adversarial threat to the U.S. and Western security. The United States pays interest on $850 billion in debt held by China, while China is in default on its sovereign debt to American bondholders. This failure to address the issue undermines justice and national security. The U.S. should follow the example of the U.K. in 1987 and demand repayment. Options include utilizing the Chinese bonds to offset U.S. Treasurys owned by China or imposing restrictions on China’s access to U.S. bond markets. It’s time to take action and enforce international norms.