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IE, they own that much US residential real estate mortgages in the form of bonds, bonds that can be dumped, making US mortgages fail or cause the housing market to crash.
China holds the most MBS / bonds.
Will they do it? I really don't think so but they have that option. Keeping the MBS makes their own sale of commodities much more attractive.
https://finance.yahoo.com/news/china-may-retaliatory-move-experts-095500223.html
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