It is commonly argued that growing economic ties tend to create common interests that will reduce tension between nations (see FT's Alphaville). The enormous amount China has lent to the US -- a total that the US data (which tends to underestimate Chinese holdings) now puts above $1 trillion -- will, according to this view, prevent other sources of conflict from getting out of hand.
Alas, relations between creditors and debtors are rarely quite so free of tension. Creditors want to get paid back in full. Debtors would rather pay back at little as possible.
Mei Xinyu, a senior researcher under the Chinese commerce ministry writing in a personal capacity for the Shanghai Daily, argues that China needs to put pressure on the US at the Strategic Economic Dialogue to do more defend the dollar. With the dollar at 1.60 against the euro, it isn't hard to see why.
Mei goes on to argue that if the US doesn't do more to defend the dollar, it is effectively defaulting on China.