China is in default on a trillion dollars in debt to US bondholders. Will the US force repayment?
thehill.com
The United States pays interest on approximately $850 billion in debt held by the People’s Republic of China. China, however, is currently in default on its sovereign debt held by American bondholders.
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The Republic of China still exists, we just know it as Taiwan. Key bit to be leaving out here, especially considering our history with the two and their weird relationship with each other.
This is also a really good point. Britain immediately recognized the PRC after the 1949 revolution while the US recognized the ROC for another 30 years. If the ROC never paid back it's debts, and the United States never asked them to, the debt was de facto forgiven.
This helps put things in a historical context, thank you!