As the USD falls it impacts China in various ways, one is it makes its exports cheaper and China’s exports are its national priority. A falling USD causes oil prices to rise, which is slightly inflationary to the Chinese economy, probably not a entirely bad thing. The falling USD hurts other big export countries like Japan and Germany, which may feel forced to print currency, and run fiscal deficits. The falling USD in the US domestic economy could spur some inflation, could boost the stock market, provide some support for housing, and maybe boosting consumer spending.
To pay for the US debt issuances what is really is needed is a trade deficit with China to prompt the Chinese to buy the all coming U.S. government debt.
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