China might have just tested its 'nuclear option' in the trade war

China may have run a small-scale test of the "nuclear option" in its trade war with the US by selling $20 billion worth of US government debt.
If China sold its $1.2 trillion in US Treasurys, it could raise America's borrowing costs, weaken the US dollar, and plunge global markets into chaos.
A fire sale, however, would strengthen the yuan, making Chinese exports less attractive, and could spin the currency out of control.
Visit Markets Insider's homepage for more stories.
China may have run a s