Bob, I would put a tariff on imported goods so they don't have a price advantage over American made. This would also help our deficit problem since the tariff would bring in income to the treasury.
Yes, China will extend it's influence through the region- they are doing that anyway- but I don't think China will become our adversary like the old Soviet Union because they have benefited too much from international trade and are becoming more capitalistic like us. History has shown them that classic communism fails.
I'm less concern about China than the Middle-East- our first priority should be to end our dependance on Middle-East oil ASAP and get our butts out of there. Their society is so incompatible with ours that it is futile to think we can ever have a trusting relationship with these crazies.