> It’s very questionable why any country with large trade surpluses would want to hold US treasuries at this point.

Fair point – then maybe they shouldn't!

But I'm not a large country; I need to pay for rent and food in USD, and my highest priority for the USD accordingly is short and medium term price stability for those two things. For long-term savings, there's other assets.

If the USD continues falling short on short term price stability as well, I agree that that would be a major problem.