[toor]

first of all, china doesnt subsidize our budget deficit but rather our trade deficit. What happens if they stop? THe US dollar loses value relative to the yuan.

Then imagine what happens, if their goods become twice exspensive to us and our goods become half as exspensive to them. So, we start exporting more they export less. How that affects the economy is somewhat a matter of debate but many people believe that it will improve for us. We will be able to buy less in the short term, but our production will go up.

Hopes this helps.