Close, Peace...I quote directly from Wolfgang's linked article:

"The Chinese are satisfied with buying US treasury bonds, partly to keep their most important customer afloat. The central bank in Beijing already holds currency reserves of $1.4 trillion."

So it's $1.4 trillion in US treasury bonds, not 1.6, according to that article in Der Spiegel. As the US currency loses value, the Chinese lose the value of their investment in America's future. So the question is, will they dump their US money to cut their losses? And if so, how much of it? And if they do, it's terrible trouble for the USA...and by extension, much of the world.