Interesting article on China & the US

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?

With its huge population and the resources that they have, their economy can probably survive on its own.  Like SG says, Chinese people have great work ethic and can survive in any condition.  There's a popular saying in Chinese that wherever there's people there's Chinese there.