There is enormous demand for dollar denominated assets so I don't expect that this demand would drop precipitously.

Most of (the holdings) are in dollar-denominated assets. They'll want to see how vulnerable it is to the U.S. Congress. It'll be more difficult to finalize an investment proposal that involves an American bank or an American asset.

If they diversify from the U.S. dollar denominated assets, it would lower the value of the U.S. dollar relative to China's currency, the yuan, and make it more expensive for American companies to buy goods made in China.

If Australia finds it has a strong Australian dollar, and it has higher unemployment, then it would have to respond, and that would either be by increasing domestic demand or by weakening its own currency.

Japanese institutional investors seem to have sought returns by selling dollar-denominated assets. That kind of repatriation is generally yen positive.

There's just such an enormous demand from pension funds and insurance companies to match their assets with the liabilities of the boomer generation.