Disagreed - as the article and in other analysis points out, China has over 2 trillion in US dollars -slowly reducing or not adding to this huge pile of US dollars will have little impact on the near to mid term situation. China has alluded to reducing their treasury holdings but have not done anything thus far, IMO, it is just a leveraging tactic for negotiations - China must keep the yuan down in order to subsidize its exports without which they do not have much else driving their economy.
What's the basis for this claim? How are they doing it?
If "slowly reducing its dollar exposure" means selling dollars in the morning and buying more in the afternoon, then it might be true but ...
I think the author's point is that very slowly may not be successfully in current conditions.
Further more, if it weren't for the US, China would already be running a net deficit. That's how strong and big the internal demand is in China. That doesn't mean their economy can't overheat, but it does mean that even in a recession they would still be a BIG consumer.
And lastly China is successfully and very slowly reducing it's US dollar exposure.