Here’s what will eventually happen, because it simply must work this way mathematically: With its US dollar reserves, China will buy USA assets, not Japanese equities, not Euro-based assets, not the Italian stock market or Italy’s national debt.
Likewise, with its Euro reserves, China will buy EuroZone assets, not Japanese equities, not US or Canadian assets.
China right now has its US reserves parked in US treasuries. The logical spot for some of those reserves is US corporations and US assets, returning the dollars where they mathematically must return.
Now imagine the shock in Congress were China to make an offer to buy Exxon-Mobile, Boeing, Apple and a basket of technology companies, and every toll-road and bridge in the country. If China wants gold, it could put in a bid for US mining companies.
At some point, such a shock will come. Mathematically it must.