If the dollar collapses...so does China.
I dont disagree with you there vigilantcitizen. China's modern economy is pretty much pinned to subcontracting to America.
But- the Chinese military is totally nationalist and intent on establishing itself as a global power. The policy for years was to bully America and use threats to gain results.
Now that threats no longer work on the United States with President Bush in office, they are faced with an option:
Become powerless and lose face
or
Shut up and stay in the corner.
Thats a situation I wouldnt be able to predict the results of, but I dont think they are in the position to challenge the US for at least a decade or so.