Folks, to be honest we already have China right where we want them. And, in fact, the USA and China are married economically, at least for the forseeable future.
China has problems we in the USA wouldn't want to have. First, China isn't evenly developed. As a rule, the further west you go, the less the development. Second, pollution. Fast development has resulted in major environmental problems. This week the air pollution in Beijing reached an all-time high - most haxardous. Third, demographics. The Chinese population is aging faster than the US population. The "one-child" policy is starting to bite China's ass with fangs of steel. A son of a one-child family marries a daughter of another one-child family. Keep in mind there's no Social Security in China. Children primarily support aging parents. So the young married couple may end up having to support themselves, their child, and up to four parents. Not a real good situation.
Re foreign exchange holdings and US Government debt, China is scared shitless we' ll print money to inflate the national debt away, making their foreign exchange reserves decline in value. They are petrified at any possibility the US Government will default on its' debts. Likely? No. Possible? Anything is possible. And China holds so many US dollars that any attempt to do any sustained large-scale movement out of dollars will cause major problems on the world foreign exchange markets.
Most of all, the Chinese government is scared shitless trying to keep the lid on popular discontent. As people's lives under authoritarian systems improve economically, people also want their lives improved politically. Transitioning from an authoritarian system to a democratic system isn't easy and is fraught with perils. Taiwan did it in the 80's. South Korea did it in the late 70's and 80's, at the cost of some significant unrest. Both countries were small and had a lot of US influence. China is a whole different animal - much bigger, no real official US influence, and widespread social media. I bet there are a lot of sleepless nights in Beijing worrying about how to keep things under control.
No, the LAST thing China wants or needs is a war with the USA. And frankly, for all our problems, our problems are relatively solvable, without resort to major internal bloodshed. China...not so much.