China has their own problems. They have roughly 20 million unemployed rural bumpkins in their cities looking for work, and with the economic downturn in the US, there is no work to be had. We aren’t buying as much Chicom junk as we did.
Jintao recently got all his military together and told them it was their duty to obey the Communist Party no matter what. I suspect the leadership fears massive civil unrest and the need for a military smackdown.
The Chinese have to buy our T-bills in the porkulus package if there is a significant probability it will get us buying their cheap junk again. Otherwise they have to trash their economic model and go back to the era of the Cultural Revolution.
We have strange co-dependent marriage with China; neither party really loves the other but neither party can afford a divorce.
21% of China's exports go to the US. They cannot escape the worldwide economic meltdown. .
And we are looking at the perfect storm in the next decade as our entitlement programs start crashing down around our ears with close to $60 trillion in unfunded liabilities; our pro-population growth immigration policies fuel a population increase of 165 million in the next 50 years, and our national debt consumes more of federal revenue up from the current 17 cents out of every federal dollar. We are the world's biggest debtor. At least China has the luxury of large currency reserves.
We may have some civil unrest in our future as our country becomes more and more Balkanized along ethnic, cultural, and linguistic lines.
It remains to be seen how China parlays its economic influence over us. Taiwan may become the peace offering, i.e., the US tacitly agrees to let China take it over through threat and possibly force.