The idea of China leveraging its U.S. debt holdings against the United States is not unfounded. In theory, China could potentially sell a substantial amount of its U.S. Treasuries, causing a surge in supply and a subsequent decrease in the value of these securities. Such a move could lead to higher interest rates in the U.S., making it more expensive for the country to borrow and potentially impacting its economy.

In summary, while the question of whether China will sell U.S. debt remains a topic of interest and concern, the situation is multifaceted. While China holds a significant amount of U.S. Treasury debt, several factors make the likelihood of a large-scale sell-off less probable. Nevertheless, monitoring the dynamics between the two countries and their financial interactions is important to gain a comprehensive understanding of this complex issue.