But then when the politicians wake up from their long nap, they realize that the world has changed and now they are unable to dictate how other nations set their policies when you at home are deep in debt and fighting two wars and you are in a deep recession (yes, it has not ended whatever economists say). Just go into any store and you will see that most of stuff is made in China. If they really care about the American people, then there should be less regulation and more manufacturing and also giving incentives to people to invest here in America. But there are pretty much many things which cannot be effectively and cheaply manufactured here (unless you have the cheapest labor and unregulated environment).
On the military side, the Chinese are rapidly upgrading their military capabilities in commensurate with the rise of their economic power. Does not these things happen, it happened to Britain, Spain, and the United States, so why the alarm. The Chinese are not fighting any wars nor do they have militaries in different parts of the world. And our own budget dwarfs the defense budgets of all the other countries of the world almost combined. And we issue securities and IOUs to finance out budget (which includes the defense budget) so we should not be in a position to raise alarm without much cause, since right now we have enough on our tables to deal with our problems.