China used to have huge trade surplus month after month, for the last few years, which was invested in US treasuries in a big way. But in the last few months, the surplus has vanished due to crashing exports. With no surplus available, now China is looking at redeeming part of the 1.3 trillion dollars it has invested in US treasuries.

That could spell doom for the already drowning US economy, because any withdrawal by the largest investor could weaken the dollar further which is not good for the country.

China is also likely to avoid investing any future trade surplus money into US , and might pump the money in shoring up its inventory of various industrial metals and materials like gold / silver / copper / zinc / crude oil / Coal etc.,