China is it's own worst enemy

This is how China ended up making swap agreement with countries like Indonesia

China tries to buy its way out of dollar trap - The National Newspaper

China’s trade and capital “twin surpluses” led to the accumulation of its enormous foreign reserves. Seeking safe investment returns, Beijing began to purchase more and more US treasury bills, financing the persistent US trade and budget “twin deficits”, and in the process, becoming America’s largest creditor.

But the US economic crisis and its government’s large spending approach in battling it have created a nightmare as far as China is concerned.

The huge US foreign debt, budget deficit and the large infusion of printed dollars, the Chinese are convinced, will lead to inflation and the eventual depreciation of the US dollar. And the process will drag down Chinese holdings in US treasury bills and other assets, which are worth well over $1tn now.
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Today, the People’s Republic of China has become the T-bill Republic and, as the economist Paul Krugman put it, China has now fallen into a “US dollar trap” and cannot get out of it, nor will anyone come to its rescue.