China Is In Default On A Trillion Dollars In Debt To US Bondholders. Will The US Force Repayment?

The United States pays interest on approximately $850 billion in debt held by the People's Republic of China.

China is currently in default on its sovereign debt held by American bondholders.

The People's Republic of China was eventually recognized internationally as the successor government of China.

Under well-established international law, the "Successor government" doctrine holds that the current government of China, led by the Chinese Communist Party, is responsible for repayment of the defaulted bonds.

To this day, China has had access to U.S. capital markets while openly rejecting its sovereign debt obligations to American bondholders.

Like the U.K. did in 1987, the U.S. must view the repayment of China's sovereign debt as essential to its national security interests.

Over the last two decades, there has been recurrent bipartisan support in Congress for bondholders to address China's default with several congressional resolutions.

https://thehill.com/opinion/international/4075341-china-is-in-default-on-a-trillion-dollars-in-debt-to-us-bondholders-will-the-us-force-repayment/