"undoubtably it will mean higher world-wide prices for everyone."
I don't see why. China stopped funding the US Federal defecit back in 2011, and the world hasn't ground to a halt.
The truth is, although Chinese politicians are fond of threatening America with stories of how the Peoples' Republic owns $1.2 trillion of American debt, and could cause real trouble if they sold them off, in reality that is unlikely to happen. Even if it did, recovery would be swift and sure - America's friends around the world would pick up the slack, and China would have lost a juicy economic plum.
Communist China loves to rattle its economic sword, but when all is said and done it desperately needs to trade with the West. The Chinese leadership isn't going to make any decisions which would make Chinese goods more expensive in foreign markets. It would have a second peoples' revolution on its hands in no time if it did.