Germany and Great Britain are reviewing options to sue China and even attorneys are now looking to get their cuts. It will be interesting to see China reaction. China owns 1.1 trillion of our debts, which represent 16% of debts own by foreigners and less than 5% of our total debt and China owes considerable portion of the United Kingdom. So it would be interesting what China would do and is it a possibility that they call in their debts or being a run on the dollar or the pound? Economic warfare?
Which leaves one option that won’t excite many of us free marketers, a tariff on Chinese goods to regain money back from the Chinese. It is better than suing since you don’t have to go to court and wait. You get the money from Chinese trade. They may counterattack with their own tariffs, but China own economy has its own problem. Trade war with China can be countered trade liberalization opening with other nations in particular Europe. So while we are involved in a tariff war with China, we can free trade with other partners to find new markets while beginning decoupling from the China economy.
The Donelson Files 