You are right in that China has not been known in history to be expansionist.
But the Bushies believe that America has got to be #1, and so they have been going about making moves to emasculate and to contain China by forging military alliances with China's neighbours, notably Japan and India. Why? Simply because the Bushies (and by extension other Americans) fear the rising power of China and all that that implies.
By constantly harping on China's significant military budget, Rumsfeld, no doubt, was trying to demonize China or cause its neighbours to be suspicious of China's intentions. It was good that the Chinese were self-confident enough to tell him to "shut up" and frankly declare China was preparing, if need be, for a war over Taiwan.
Most probably, America is trying to provoke China into a war sooner or later in which America feels confident about winning and then forcing China to pay indemnity that will neutralize the humongous American debt to China, (LOL!!!)
OR
America (by increasing its own military budget and rallying other countries) is trying to cause China to be nervous and force
1) China to ever increase its military budget much to the detriment of its national development projects and social programs and
2) thereby slowing China's advance to a crawl, and hoping thereby
3) to foment social discord/unrest that would lead to China's "self-destruction".
To be sure, America is afraid of China. There is no doubt that if ever China gets Taiwan back, it would be much more powerful than ever before. So, America is covertly and overtly seeking to prevent China from recovering Taiwan. Hence the present Adminitration's efforts in closing the ring on China and creating a "congagement" pact with Japan.
Like it or not, it is a fact that many Americans and Europeans, too, resent the rising power of China. Most probably many of them are thinking, "It's horrible and demeaning having to kowtow to them now. Just about 150 years ago, those Chinamen were our slaves, coolies, cooks and laundry cleaners and chambermaids & etc, and not a few of them were speared to death when discovered as stowaways in wooden crates in San Francisco harbour."
Too bad the Bushies don't have Chinese wives just as you have one. Otherwise they would be thinking and acting in the lofty way as you have envisioned with America and China helping one another to advance to their mutual benefit.
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