Both Moody's and Standard & Poor's credit rating agencies have downgraded China's debt in the last few weeks.
So why is Trump still worried about China with a major financial restructuring about to begin soon?
After nearly 30 year Moody's on Wednesday downgraded Chinese debt one notch.
In March 2016, Moody's cut its outlook on China's ratings to negative from stable, citing rising debt and uncertainty about authorities' ability to carry out reforms.
Rival ratings agency Standard & Poor's downgraded its outlook to negative in the same month. S&P's AA- rating is one notch above both Moody's and Fitch Ratings, leading to speculation among analysts that S&P could also downgrade soon.
In explaining it's move Moody's wrote:
The downgrade reflects Moody's expectation that China's financial strength will erode somewhat over the coming years, with economy-wide debt continuing to rise as potential growth slows," the ratings agency said in a statement, changing its outlook for China to stable from negative.
In March 2016 both Moody and Standard & Poor's downgraded China's rating from stable to negative citing rising debt and growing doubt about the Chinese leadership to transition the economy in the near term future.
Chinese debt is at 300% of the county's gross domestic product. Debt for equity swaps have been insufficient to cut the overhang of debt, most experts think.
A growing number of economists believe that a massive bank bailout may be inevitable in China as bad loans mount. Last September, the Bank for International Settlements (BIS) warned that excessive credit growth in China signaled an increasing risk of a banking crisis within three years.
Trump has postponed China's economic issues because of progress dealing with North Korea-but not much is being done should the banking crisis become sever enough to involve American finances. The Treasury today is still understaffed with major post still unfilled making senior level leadership unlikely to have power to deal effective should a crisis arrive.