China selling off US treasuries into dollars

I read an article today about China selling off its US treasuries and transferring to dollars. This is the reason for the recent uptick in the value of the dollar. While demand for US treasuries is still strong does anyone see any risk here? I'm no economist but if China is selling US treasuries and the fed is talking about raising rates (which is basically selling treasuries). Seems we could be at risk for some type of interest rate spike in near future? Something like this will definitley affect real estate and the economy as a whole.

Or does everything I just said make no sense.

Thoughts?