Group 1 - The recent claim by American media that "China owes the U.S. over $1 trillion" is rooted in a historical debt from over a century ago, which is being used as a political tool rather than a realistic financial threat [1][3] - The original debt dates back to 1911 when the Qing government borrowed £6 million for railway construction, which became a contentious issue after the fall of the Qing dynasty [1][3] - The debt was briefly acknowledged by the Republic of China but was ultimately abandoned due to political instability and the establishment of the People's Republic of China, which rejected the debt as a product of unequal treaties [3][5] Group 2 - The current U.S.-China tensions have led to renewed discussions about this historical debt, with some suggesting that the U.S. could threaten to refuse payment on the $759 billion in U.S. Treasury bonds held by China [5][7] - China's holdings of U.S. debt have decreased significantly, down by $557.7 billion from their peak, indicating a reduced reliance on U.S. Treasury securities [5][7] - The potential refusal to pay China could destabilize the global financial system, as it would undermine trust in U.S. debt and could trigger a sell-off of U.S. bonds by other countries [5][7] Group 3 - The U.S. relies heavily on the trust of its allies in its financial credibility, and any breach of this trust could jeopardize the dollar's dominance and the U.S.'s military alliances [7] - In contrast, China has developed a stronger resilience to economic risks due to its experience with economic sanctions, positioning it better in a potential economic confrontation [7] - The political rhetoric surrounding the historical debt appears to be more about creating a narrative than a genuine financial strategy, as any drastic action could backfire on the U.S. itself [7]