China will use this as a negotiation point to further their agendas. The US has used this tactic before, notably in the Suez Canal crisis to keep Britain and France from attacking Egypt:
It's not in the best interests of China to cause massive inflation of the US Dollar, but it definitely gives them the ability to put short-term pressure on US politicians.
http://www.fpri.org/enotes/200709.bracken.financialwarfare.h...
It's not in the best interests of China to cause massive inflation of the US Dollar, but it definitely gives them the ability to put short-term pressure on US politicians.