China must have been wondering isn't it foolish to sell products to the US, accumulating a few trillions dollars of paper money, which can't be used to buy high-tech chips it really needs and someday may lose it all. It may actually be searching ways to decouple from the US, at least from the US dollars.

They probably are, but it isn't easy. The USD is the still the top dog when it comes to liquidity and convertibility. Other currencies can do the job situationally, but nothing works as well universally as the USD. And trade is a whole lot easier if everyone is using the same, or at least similar currencies. That means many countries either use the dollar, have strong pegs to the dollar, weak pegs to the dollar, or pegs to a basket of currencies, which is effectively the same as a weak peg to the dollar. China is in the latter category.

If China wanted to do more business in renminbi, it would have to allow access to its capital markets, which it doesn't want to do because as an exporting nation that would cause the renminbi to strengthen, make Chinese exports less attractive. So they are kind of stuck for now. They need to either use dollars or something dollar adjacent.

Nothing last forever. The chaotic US policies have caused many to rethink the notion of the US being a safe haven. Undoubtedly many countries are reviewing ways to decouple from the dollar and conduct trade in more stable currencies.