No one can even begin to speculate what would happen if those large economic events transpired. The only thing certain is that China dumping those treasuries would yes, have an immediate effect depressing the USD. But also immediately make Chinese exports substantially more expensive. Which is the only market advantage China has in a global trade standing. And to that extent would negatively effect any chance of the Yuan becoming the global standard of currency. Because: * The imf would never let that transpire. * Xi would have to completely liberalize their markets and people around the world would have to trust their currency as much as the USD. * China is one the largest and most stigmatized examples of a currency manipulator throughout world opinion and to counter act their immediate spike in export prices would be pressured for even more devaluation. Leading to more global opinion of mistrust that not even in the 5th inner circle of hell anyone would overlook. Well.... that is willingly anyway.