So, when China and other countries recycle their dollar inflows by buying US Treasury bills to "invest" in the United States, this buildup is not really voluntary. It does not reflect faith in the U.S. economy enriching foreign central banks for their savings, or any calculated investment preference, but simply a lack of alternatives.
China has been artificially depressing the yuan against the dollar for decades, intentionally creating the trade imbalance. Now it's America's fault that we import too much compared to exports. And it's America's fault that China buys so many dollars, at prices guaranteed to keep the dollar high. And this isn't a plan at all, they simply have no other choice.
Right, got it.