You have to keep in mind a carefully researched book that showed there was NO direct Bin Laden-China leak wouldn't sell. But one that does will sell thousands to the foil hatters.
I have to state I'm NOT pro-PRC, and nor do I believe the PRC is no threat to the US...it is. But there is just an amazing amount of BS out there overhyping China's military, claiming hundreds of thousands of PRC troops are all over the world, and the new hobby horse is linking China to Al Qaeda directly.
Without a copy of the book it's difficult to analyze it line-by-line. But I'm 95% sure it's pure BS. Nothing about the author gives me any confidence at all it's a rational, balanced analysis.
You are probably right - to fight effectively for a cause one must, for the most part, believe in the system demanding sacrifice. From what I see and hear, the CCP (of which the PLA is only their lap-dog) has enough trouble standing on its own merit among its supporters without the added detriment of a conflict with the U.S. which would serve only to quickly alienate the pro-democratic constituency (BTW, pro-democratic is not to be mistaken as pro-western). Besides, the Chinese aren't totally ingorant of the power of the U.S. - they probably know as well as any American citizen. The Chinese arsenal of NW's compared to America's would be much similar to the man going to a gunfight armed only with a pocket knife. Their possession of warheads as a world nuclear power seems to be primarily as an antidotal sense of security and parity. They can't use them offensively in any capacity without a U.S. and/or world reprisal leading to the total destruction of their country.