China needs the US to be reasonably healthy. Plunge the US into a depression and they won't be interested in anything that has the sticker "Made in China" on it. Its a lot easier for the US to find some other creditor than it is for China to find another place to sell their cheap, low quality products. If they don't know this they are being incredibly stupid. Speaking of which ...
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China could destroy "hundreds of American cities" with nuclear weapons
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So what? The US can eliminate all the Chinese nuclear missiles practically simultaneously, including the missile submarine, with 0 warning. B2 bombers can ruin your whole day. And even if China managed to get the first shot off, they'd be obliterated half an hour later. By the way, while China has hundreds of nuclear weapons, it doesn't have hundreds of ICBM's of sufficient range to launch them with. And thats assuming it all works properly for them anyways. Their nuclear technology comprised mostly of Chinese knockoff's of Soviet designs, which were largely stolen US designs. Odds are half of them would blow up as they're launched and the other half will be duds.