The rest of the world benefited from taking advantage of China's massive work force to make cheap goods to fund our life style from throw away fashion to cheap electronics....I mean how else do you get a 50" TV for under £300?
In return China got money in return, I mean that's how it works. You get paid for your work. We can not use China and build everything ourselves but in return we need to prepare to pay much higher prices for pretty much everything. Or pay other countries with a similar work force to do it, like India, but they too will get rich we are still going to have the same problem in a couple of decades.
As for actual war and invasion, that's not going to happen. The US will crush pretty much everyone if there is a real war. The US have a much larger military, more allies and more oil.
Well no, as if it ever came to a full-scale war, there'd be no winner. We're already in a resource war and China know's it, with regards to water, just look at where the SE Asia water supply emanates from.