China will own 1 trillion US dollars

Financial theories are not my forte, but this article scares me. I see a collision course that can only end badly, with the result: another Friday the 13th.
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Newsweek International

Sept. 4, 2006 issue - Sometime over the next few weeks, a shipment of lawn furniture, brake pads, lamps or the like is going to make history. The manufacturer, one among tens of thousands churning out product 24/7 in China's humming coast-al cities, will fill an order bound for the United States, take payment in American dollars and add a 12th zero to Beijing's foreign reserve?-pushing the tally over the $1 trillion mark. Neither buyer nor seller will realize the transaction's significance, and barring an unforeseen shock to the global trading system, China's reserve will continue to rise by roughly $17 billion a month.
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Beijing's growing dollar hoard represents the most dangerous imbalance in today's global economy. The United States is both importing heavily from China and borrowing heavily from the country to finance those purchases, pushing the dollar down and putting the two economic superpowers on a collision course. Washington politicians demand that Beijing raise the value of the yuan against the dollar, and Chinese officials have hinted that if pushed too hard they might shift their near-trillion-dollar reserve out of U.S. Treasury bonds, which could trigger a U.S. and global recession. The main thing preventing this confrontation is the fact that both sides have too much to lose. Former U.S. Treasury secretary Lawrence Summers once called this "the balance of financial terror." What has gone widely unremarked is that, increasingly, this balance is threatening China as much as the United States.
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http://www.msnbc.msn.com/id/14535192/site/newsweek/