Could it be, that, if, US ever decided (in a deep, deep theory) to default on it's bond share to China, China in return would privatise US equity exposure in their country ? Two numbers close to each other. ,,If you do me this, i will do you that"
Actually, when you speak to C-level executives in China, they will tell you that they are afraid that the US of A is printing too much "worthless USD". Thus, they spend their overhang of USD liquidity by buying real assets in Europe, North America, Switzerland, Singapore, Oceania and elsewhere - where they still get value for the buck. If you are running inflation super hot as the FED does, it is obviously a clear sign that the "value" of the USD is deteriorating.
You are talking about two issues. Shall US defaults on its bonds, overall costs of borrowing will go up, debt services amount will jump to unaffordable. The second is US "withhold" payments to China in particular, no one else would buy UST ever again. I am talking non G-7 countries, effectively UST is toilet paper. Private sectors may or may not net because consumer brands make a lot of service revenues in China, i.e. Starbucks, Apple, GM. It is not awash.