Richmond Fed president Lacker makes a point I’ve made countless times before: It is not in China’s interest to dump US assets as the damage done to the dollar would hurt them as badly as anyone else. The US and China have each other hostage and that situation is unlikely to change until China has sufficient domestic demand to rely less on exports than it does today.
Lacker goes on to say that the US is an attractive place to invest and that China’s interests are faily well aligned with the US.