Newsweek reports that if the U.S. suddenly stopped trading with China, the consequences would be devastating for both countries. The U.S. and China are so substantially intertwined that they are in some sense part of a single economic system. An abrupt end to that relationship would result in a major recession in both countries. The U.S. economy would eventually recover, but China would likely enter a depression that could result in its economic and political collapse. The consequences would extend far beyond the U.S.-China import/export relationship. The biggest potential impact would be a macroeconomic meltdown. The loss of trade with the U.S. would send the value of China's currency into freefall. This would force a fire sale of China's massive dollar-denominated foreign exchange reserves, principally held in U.S. Treasury securities. Yields on U.S. government debt would likely spike.