No, China cannot "call in" U.S. debt because U.S. Treasury securities are bonds with set maturity dates, not loans that can be demanded early; China can only sell its holdings on the open market, a move that would also harm China by devaluing its dollar assets, but China is actually reducing its holdings, with Japan and the UK holding more US debt now. Demanding immediate repayment is impossible, as these are legally binding contracts, and selling them would just mean other investors buying them, potentially forcing higher interest rates for the U.S. but not a sudden financial collapse, according to Quora users and Reddit users.
Even if China wished to “call in” its loans, the use of credit as a coercive measure is complicated and often heavily constrained. A creditor can only dictate terms for the debtor country if that debtor has no other options, but U.S. debt is a widely held and extremely desirable asset in the global economy.
The United States pays interest on approximately $850 billion in debt held by the People's Republic of China. China, however, is currently in default on its sovereign debt held by American bondholders.
In December 2021, debt held by the public was estimated at 96.19% of GDP, and approximately 33% of this public debt was owned by foreigners (government and private). The ratio of debt to GDP may decrease as a result of a government surplus or via growth of GDP and inflation.
The nations with the largest holdings of Treasury securities – Japan and China – are often blamed as the culprits of recent volatility in the US Treasury market. However, Chinese ownership of US Treasury holdings has been on a declining trend for the past decade.
If China attempted to sell all of their bonds rapidly to disrupt the market, the Federal Reserve would step in and purchase ALL of them, or provide unlimited liquidity for US banks to do it. China would lose a vast amount of wealth, it would be a catastrophic mistake.
Eliminating the U.S. government's debt is a Herculean task that could take decades. In addition to obvious steps, such as hiking taxes and slashing spending, the government could take a number of other approaches, some of them unorthodox and even controversial.
There are several reasons why China buys U.S. Treasuries. These instruments are among the world's safest assets, making them secure and stable and the U.S. dollar remains the world's reserve currency in international trade. This allows the Chinese central bank to effectively hold dollar-denominated assets.
🇺🇸 U.S. The United States continues to lead with $38.3 trillion in government debt, which accounts for just over one third of the global debt pile. China and Japan follow with $18.7 trillion and $9.8 trillion respectively, meaning the top three countries combined account for 60% of the world's debt.
Top 20 Countries that Owe the US Money
Brazil: $54.3 billion (£43bn) total debt
Across South America, Brazil is easily the largest recipient of BRI funding and holds the most total debt to China.
Shortly after the founding of the Federal Reserve, the U.S. Treasury adopted policies that induced the Fed to monetize government debt. Monetizing debt means the government borrows money to buy goods and then repays its debt by printing more money.
Washington has spent years warning countries about the dangers of accepting Chinese loans. But over the past two decades the United States has been the largest recipient globally.
The counterintelligence and economic espionage efforts emanating from the government of China and the Chinese Communist Party are a grave threat to the economic well-being and democratic values of the United States. Confronting this threat is the FBI's top counterintelligence priority.
If the US defaults. there is no safe place to put your US Dollars. The alternatives are commodities (gold,silver,collectibles) or possibly foreign currencies (euro,pound,etc). But really, if the US defaults the best assets you'll have would be canned goods and ammunition.
Economists say consequences of a default on the national debt could include higher interest rates, a stock market crash, a recession and massive job losses.
Australia's government debt is nearing $1 trillion AUD in gross terms, with forecasts placing it just over that mark in late 2025 or early 2026, representing around 32-35% of GDP, which is considered relatively low compared to other developed nations despite rising from previous years. Net debt, which accounts for government assets, is lower (around $880 billion in 2024-25) but also growing as a percentage of GDP.
As the world's biggest gambling hub, Macao SAR has zero debt, bolstered by billions in gaming revenue and healthy financial reserves. Liechtenstein ranks in second, with virtually no debt and the only country in Europe ranking in the top 10.
Of course, China could sell off some of its enormous reserves of U.S. Treasury securities. It currently owns almost 10% of the total Treasury debt held by the public. This is slightly less than the percentage held by Japan and residents of Japan, but substantially more than the percentage held by any other country.
This depends on two components: growth in economic activity, and the interest rate on government debt. If economic growth on average is higher than the interest rate, then the government's effective interest cost is negative and it could sustainably carry its existing debt burden.
America owes China about $1 trillion dollars. Until we balance the US budget and pay down our debt, China's ownership of 7 percent of the national debt will continue to give it a vested interest in America's prosperity, not leverage to do us harm.
The phrase “Trump IRS forgiveness” is often used to describe speculative or proposed tax relief measures tied to Donald Trump's campaign promises or tax policies during his presidency. However: No legislation has been passed in 2025 to forgive IRS tax debt due to Trump's re-election campaign.
A feared recession didn't materialize, but unemployment rose, wage growth slowed and affordability challenges are mounting. After a chaotic year filled with trade wars, market gyrations and the longest government shutdown in history, the U.S. economy has, once again, proved more resilient than many forecasters feared.
Medical Bills
Unexpected medical expenses are one of the leading causes of debt in the U.S. Even with insurance, deductibles, co-pays, and out-of-pocket costs can quickly add up. A single accident, surgery, or extended hospital stay can lead to tens of thousands of dollars in bills.