If the United States government were to selectively or entirely default on sovereign debt obligations held by China—or fail to service its Treasury securities broadly—it would trigger an unprecedented catastrophic shock across global financial markets. Because U.S. Treasuries serve as the foundational bedrock of the international financial system and global liquidity, a targeted or general default would shatter international trust in American creditworthiness, spark massive panic selling in global bond markets, and cause Treasury yields to skyrocket. Such an event would likely cause a severe global economic recession, severely weaken the U.S. dollar's dominant reserve currency status, and trigger retaliatory economic measures or diplomatic crises internationally.