Over $10 trillion will be demanded of global capital markets in 2024, to feed the US government's spending and borrowing. Much of this capital will be swept back into the US from foreign holdings of USD, worsening the inflation in the US.

This will also create serious problems for trading countries. A severe shortage of dollars held abroad is causing debt service on dollar-denominated debt very difficult, even for entities that are performing and profitable.

China has no choice but to step in and backstop many of the loans and investments provided under its Belt and Road Initiative. These loans were made in US dollars, and are supposed to be repaid in USD. However global holders of dollars will be sending large volumes back to the US, attracted by the highest yields in two decades. China is extending operating loans and credit via its swap lines, this time in renminbi. By doing so it is hoped that these borrowers can trade out of their obligations over time.

Resources and links:
Chart and map of China's Belt and Road
https://chinapower.csis.org/china-bel...

China's trade surplus chart
https://prosperousamerica.org/china-t...

US debt rising by one trillion dollars every hundred days
https://www.cnbc.com/2024/03/01/the-u...

$7.6 trillion in debt to mature in 2024
https://markets.businessinsider.com/n...

US Treasury yield curve
https://www.bondsupermart.com/bsm/art...

CNN: China now bailing out BRI countries
https://www.cnn.com/2023/03/28/econom...

NBC: China is now shifting from lender to debt collector
https://www.nbcnews.com/news/world/ch...

Chart, Cross-border lending by China through 2021
https://www.statista.com/chart/31150/...