Image by jmtimages via FlickrI suspect the U.S. will not pay the full real value of its financial debt to China. It doesn't matter if we continue to borrow more from China because we do not have the capacity to pay back what we owe now. If there were any type of big conflict between the U.S. and China in the future, the United States could simply refuse to pay China what it owes. If there are no future conflicts between the two countries and the U.S. figures it can't pay, the U.S. government will deliberately cause inflation and pay China with worthless money in some degree. The economies of the two countries are tied together and if one fails the other will have problems.
China may be bigger economy than US within two years – Telegraph Blogs
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