There is still some sort of Ricardian equivalence that will play out through inflation and exchange rates and employment. Being able to print money, doesn't stop major problems when bad loans are made. Bad housing loans were made in the US, and it ended up increasing the US debt significantly, even though the US governement can print money. China faces the same issue, and it will reduce the reserves significantly.
China's national debt is 4% of GDP and they have balanced trade. They don't need to borrow when they have 3 trillion in reserves. Totally different animal we're talking about here.
