In China the real estate market is down 30%. The CCP is having to bail out the builders using money in the Bank of China. They won’t let depositors take out their money.
Here is where it will hit us: This will cause internal discontent. The CCP holds 1.2 Trillion dollars of US debt.
If they need money, they will dump these obligations on the market. That increases the supply of debt for investors ie; pension funds. The US government will have to pay more to borrow money.
That increases the interest we will pay to sell debt on the market. This increases our Public Debt figure when all the interest is recognized.