Would love to hear what the BOWS community's take on this article is:

 

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/6575883/China-has-now-become-the-biggest-risk-to-the-world-economy.html

 

Two interesting assertions made by the author:

 

1) Any move by Beijing to liquidate its holdings of US Treasuries could be neutralized – in extremis – by capital controls

2) If provoked, the US has the economic depth to retreat into near autarky (with NAFTA) and retool its industries behind tariff walls – as Britain did in the 1930s under Imperial Preference. In such circumstances, China would collapse.

 

Does the US really retain this much power over China?