It's not as simple as it seems, because as the article says, China has the ability to harm the US, but if it goes in that direction, it will harm itself as well. Simply put, China depends on the US and vice versa, and all this pressure from the US is just an attempt to reach agreements that will be more favorable to the US than they have been so far.
Cohn added that China depends on keeping the renminbi (RMB) weaker than the US dollar to keep its exports cheaper and more attractive for American buyers. To do this, China has kept buying US debt for years.
china is de-coupling its dependency of US as a customer, also china has not been the most cheapest labour/supply cost market in the world for a while now. so even the US wants to stop using china as "factory of the world". the US want to decentralise its supply chain to be less reliant on china, and instead adopt more supply from vietnam, thailand, india and other places.
As for China's investment in Bitcoin, I think this is just one possible interpretation by one of the people from BlackRock who obviously want to emphasize the possibilities of investing in BTC even more, considering that they are doing great with their BTC ETF. However, whatever the economic situation on the global markets, I would not agree that China will just decide to invest in BTC, given that they are fanatics who are obsessed with control, and how will they control something that is decentralized and also largely depends on mining farms and various companies located in the US?
i agree its just a theory by blackrock. after all dropping hundreds of billions of trade deals and us bonds. but only having $16b-$18b of bitcoin is not a sign that they are going to swap out hundreds of billions of bonds for hundreds of billions of bitcoin.
their gold hoard seems a more likely reserve they will aim for, along with other rare metals
china controlling rare metal market and supply is more a savvi economic plan than being a slave to the bitcoin volatility