Chinese president is visiting African and middle east countries now, eventually, Chinese want to persuade them to take Renminbi for trade. maybe some military bases in not too distance future.
The Chinese should be grateful that American people financed their standard of living with their US money and they should also know that, fundamentally, there is nothing they can do with US dollars other than invest it back in the US, unless they want to find out what protectionism is all about...
This is true. When the recent legislation included "Buy American," though, there was a monolithic backlash because of the profound damage that would occur to international treaties. On the subject of treasuries, China can't really diversify away from US debt, especially when they're sitting on $2T. If they were to FORMALLY appeal to the US for guarantees, it would probably be heard by few in the treasury department.
it's mostly lobbying from unions who want by american b.s. 70% of jobs are in services. as for manufacturing most jobs are in constructions of homes etc. auto is only say 10% of economy. and cars is old economy, people don't need cars anymore with mass transportation and telecomutting. maybe the governments should stop wasting capital on the military and invest in more productive activities.
I think you misunderstood what he said. My understanding is that he meant if the US wanted more money from China, it had to first guarantee the existing debt, which is perfectly fine. BTW, this has nothing to do with markets or honor of contracts, it's politics. Who's got the leverage?