It is a "Prisoner's Dilemma"

It is a "Prisoner's Dilemma" - for China and many other countries having huge reserves in USD. If they withdraw funds from US, the USD loses value and their reserves in USD gets hit. If not, in any case USD loses value and your funds gets hit. And the country which acts first by withdrawing from USD loses the least, b...ut gets punished by the US. And if it doesn't withdraw, in any case it loses its assets.Read more

China is trying at least to diversify its assets. It is also earmarking further investments in Euro And Yen as well as in raw materials and companies & assets around the world.