Well, our domestic capacity is underutilized and we are much less in a vulnerable trade position than those latin american countries. We have a highly diversified and productive economy. There is no way china has any leverage to dictate our domestic tax or spending programs. When it comes to foreign trade and international affairs, they have greater influence, but still not to an extent that it threatens our sovereignty.
U.S. treasury debts are issued on our terms, denominated in our dollars. It is impossible to assess a nation’s value in terms of balance sheets alone, much more so than other financial entities. Our 20 trillion or so of outstanding t-bonds are savings accounts with the treasury, similar to savings account you might have with a bank. (This is a fact MMT often emphasizes, and I agree with MMT on this point, but not everything).
Of this $20 trillion, $5.56 trillion is held other federal agencies, $14.4 trillion is held by the public, and only $6.00 trillion of that is held by foreign entities. $6 trillion is less than 1/3 of our GDP, and only about 2.5 years worth of income tax revenue($2.6 trillion).
There are certainly issues to consider with trade balance, and we should try to maintain good relationships with our neighbors and those who save treasury assets, but there is no cause for alarm, and the debt alone is not a threat to our sovereignty.