Core Viewpoint - The recent discourse around "Qing Dynasty bonds" by some U.S. media and politicians, claiming that China owes $1.6 trillion in "old debts," is fundamentally flawed and politically motivated, disregarding international law and historical context [1][5]. Group 1: Nature of the Bonds - The so-called "Qing Dynasty bonds" were issued during the late Qing Dynasty for purposes such as railway construction and war reparations, but due to regime changes and turmoil, they have become unclaimed historical artifacts [1]. - According to international law's "clean slate" principle, the new Chinese government established in 1949 is not obligated to inherit the foreign debts of the previous regime [3]. Group 2: Legal Validity - Many of these bonds have become collectibles over the past century, with original holder information obscured and many replicas in circulation, failing to meet basic legal evidence requirements [3]. - In the 1987 case "Jackson v. People's Republic of China," a U.S. federal court ruled that China is not liable for Qing Dynasty debts, establishing a legal precedent that remains valid [3]. Group 3: Political Motivations - The U.S. is currently facing high inflation, rising fiscal deficits, and a debt ceiling crisis, leading some politicians to use the "China owes debt" narrative to divert domestic attention and create a victim narrative [5]. - Politicians like Senator Blackburn and Congressman Vance are promoting "debt justice" proposals, which appear to be more about political maneuvering than factual accuracy [5]. Group 4: Implications for U.S. Creditworthiness - If the U.S. were to attempt to offset legitimate U.S. debt with these invalid old debts, it would undermine its own creditworthiness, potentially leading to a loss of global investor confidence and destabilizing the dollar's international standing [5]. - The Bank for International Settlements reports that over 60% of global central bank foreign exchange reserves are denominated in dollars, indicating that any breach of trust could have long-lasting repercussions [5]. Group 5: China's Position - China maintains a clear stance that it does not inherit Qing Dynasty debts, supported by international law and U.S. judicial precedents, and emphasizes that its holdings of U.S. debt are legitimate market transactions [7]. - The ongoing "old debt farce" reflects the political anxieties within the U.S. and highlights the shortsightedness of certain politicians, as true leadership involves adhering to contractual obligations and international rules [7].