I think you missed the point. In a "war" scenario what good would it do China to "dump" any assets if no one is going to buy them?
Those that would support China do not have the assets to buy what they would "dump".

Quote Originally Posted by Bren122 View Post
That's the point- it costs Beijing nothing to ruin America's economy (in a war scenario) by dumping 1/7 of the US national debt on the markets for next to nothing- the other creditors, faced with ruin, would begin to dump theirs or demand payment or rescue (50% of government debt is held in private hands- a lot of that in the US itself).
The other scenario is that off-shore governments seize Beijing's assets- Singapore would be a likely ally of the US and is home to about a quarter of Chinese holdings; the UK is home to somewhere between 1/6 and 1/5. Even a neutral country like Russia might take advantage of the situation and seize Chinese assets.
When dealing with China's economy it must always be remembered that it relies on the US to spend, spend, spend. It keeps at least 50% of its reserves (valued at nearly $US3trillion)offshore to keep its domestic economy under control- it buys US dollars on all markets to keep its own currency artificially depressed- it buys up US debt in all markets in order to keep US enemies from threatening the US economy. China's is an export economy with little domestic consumption (relatively speaking) so if it could not export the economy is ruined regardless of whether it holds or liquidates its debt holdings. America would probably (90%) win any war with China, but its economy would be in tatters.