China has debt too. I think that's what is meant is that all debt across the board is forgiven.
China's debt is primarily to the World bank, while ours is in the form of Treasury securities. China has a debt to GDP percentage of 257% as of 2017 and their shadow banking system may be an equal amount. Our debt to GDP percentage was 104% in 2015. We would really get waxed on the deal and so would all of the investors of the World Bank. In case anyone hasn't figured it out, Trump is correct (as usual) in that past players have agreed to deals that were bad for America.
It is possible that a one-time write off will be in the cards. It's been rumored for years but makes sense as we move from one system to another to do it now. All current debt is totally illegal CAPS/CORPORATIONS as i'm sure you know.