The problem with this scenario is that China has Trillions...

The problem with this scenario is that China has Trillions invested in US$ bonds and withdrawing just a small amount would seriously damage the US bond market and hence the US economy.
Also drawing down these bonds to pay their debits would be almost as bad for the US economy as slapping on taxes on Chinese imports.
Unless the US can default on these bonds the Chinese have a a boot on the US throat, even stopping buying more bonds by the Chinese would be a disaster for the US due to their massive trade defeceit and a requirement to fund it from the rest of the world.