I'd hate to speculate.
We can expect that when they make their move, it will be lightning swift. With as little warning as possible. And it will be ruthless. Hence nuclear. Their own version of shock and awe. That is in all their military literature of late.
Thus, it is likely that they will coordinate the confrontation...so that there is a simultaneous assault on both South Korea and Taiwan. Meantime, full corrupt pressure will be put on their Panamanian lackeys to block U.S. military transport through the Canal Zone. And if that fails, there will be "accidental" sabotage of the locks. It is possible that Colin Powell failed to appreciate the threat there, eh? And it is also possible that "anonymous" ballistic or cruise missile EMP devices could disrupt U.S. C4I at a propitious moment.
The combined effect of whatever they intend to do would be to produce a military fait accomplice'. One such that the U.S. literally is paralyzed until the subjugations are accomplished. With South Korea and Taiwan "off the table", the Chinese would indeed be able to strangle the U.S. from reconstitution of its lost industry. From that tactical advantage, they would be able to thwart any "Normandy" style rescues.
They could, using their combined military and economic extortion, likely bring Japan to its knees, and attempt to coerce it into neutrality or satellite status. I think we are agreed that in this scenario Japan and Western Europe are the only likely avenues of "re-industrialization" aid. Meanwhile, with socialist governments in China's orbit in South America, from Venezuela to Brazil we can expect some kind of disruptions from that quarter to be coordinated.
Poohbah makes a big deal out of the disproportionate number of young men without prospects in China's demographics. Rather than making China risk averse, however, it goes the other way. This factor just makes Bejing all the more likely to "go for it" and conscript the entire lot of them not necessary for their industry, and use them as cannon fodder for their occupations.