It does sound weird but Trump has hinted that he may just refuse to pay back the loans to China due to their alleged involvement in the spread of the Coronavirus. President Donald Trump wants to renege on obligations. Reneging on obligations to China alone will not count as default as it is only to a particular debt holder. Trump can demand that banks halt payments of interest or principal to any account held by Chinese government counterparty. These presidential powers have been used in the past against Iran in 1979 and against Venezuela recently. But China is not Iran or Venezuela and Trump do well to remember.