I agree... a buildup of power would be necessary for a showdown over Taiwan. Plus I'm sure China wouldn't mind competing in the global materiel market. But in general the "threat" to the US will be like a Cold War Lite... we could take each other out (deterrence), but there's not necessarily the ideological battle that will prompt us to occupy other countries. I don't see China reverting to a harder-edged form of Communism, since they need the trade to afford the military buildup.
OTOH, I don't necessarily agree that the US' technological advantage is the deal closer it once was. Iraq is showing how a huge Army can be a major factor.
