You touch on exactly the right issues, and overall I agree with your take on it.
It was a brilliant strategy to play off China against Russia, even if only making Russia second guess the situation.
It really helps to have lived through those times and understand the dynamics in play at the time.
How can you possible say that?!!! It wasn't brilliant it was monumentally stupid. It has resulted in a weak de industrialized USA. Our "relationship" with China didn't hasten the slit up of the USSR by one day.