With increased tariffs against China, they need to adapt and be less dependant exports to the US. When that happens, they will be less concerned about the value of their currency against USD. So, they might not need US Treasury bonds or to hold USD anymore. What could then happen to the market?

To elaborate, consider a worst case scenario where the US market is no longer the primary driver of China's exports. I see two possible outcomes:

1. China could buy more USD and Treasury bonds to mitigate the tariffs. Offsetting the tariff's impact.

2. China focuses on other markets, selling off their US assets, and potentially destabilizing the US economy.

Are stocks in other markets a better investment?