What prevents China from calling in all the debt the U.S owes them?

Ha-HA-HA There are no safeguards.
But the amount of Securities held by China is considered to minimal and would have little impact to economy.
From Wikipedia
“The National Defense Authorization Act of the fiscal year 2012 included a provision requiring the Secretary of Defense to conduct a “national security risk assessment of U.S. federal debt held by China.”

“The Department issued its report in July 2012, stating that ‘attempting to use U.S. Treasury securities as a coercive tool would have limited effect and likely would do more harm to China than to the United States. As the threat is not credible and the effect would be limited even if carried out, it does not offer China deterrence options, whether in the diplomatic, military, or economic realms, and this would remain true both in peacetime and in scenarios of crisis or war.’ ”

“A significant number of economists and analysts dismiss any and all concerns over foreign holdings of United States government debt denominated in U.S. dollars, including China’s holdings.”

Technically, China can ask for it. but it would be a stupid move for China, because where else would they put it? In Euros? in Japanese yen? There’s no other currency other than the dollar that has worldwide transferability and is stable.

Unless China wanted to take a big hit on their savings and destabilize things at the same time, they won’t do it.

We owe China a trillion dollars.
We owe Japan a trillion dollars.
How can economists think that isn’t significant?

@filmfann The impact of Japan and China is like 5% of the dollars.

I don’t have a trillion dollars ! ;>) I don’t owe anyone a trillion dollars. ;>0 So for me a trillion is BIG.

I guess it would be like the bank repossessing an old worn out car. They may own us, but what is it worth?

@SQUEEKY2 What prevents China from calling in all the debt the U.S owes them?

The prospectus under which the debt was issued.

Callable means that the issuer has the option of repaying the money early.

Few corporate bonds are “puttable” ie. issued with the option for the investor to invoke early repayment.

Somewhat amusingly, the debt is usually denominated in USD.

Same thing that prevents credit card companies from calling in all their accounts. Carrying debt is quite profitable. The US pays mondo-billions of dollars in interest every year. We’re a golden-egg-laying goose. Succulent though our flesh may be, they’re not going to eat us.