Your solutions? How do you suppose our overall economy would be affected if we suddenly told China to go **** itself and we stopped importing everything WalMart sells (WalMart being the number one EMPLOYER in the United States, for starters)? What would happen then when China would demand immediate payment on all the T-bonds it holds? Where would THAT money come from?
Playing the coulda/woulda/shoulda game doesn't solve the problem.
Solutions? How about a balanced budget so we don't have to borrow money from China all the time.
What happens if China demands immediate payment? Interest rates go up drastically and the US dollar gets devalued greatly.
At some point we're going to have to go through hard times to make up for all the careless decades of horrible monetary policy.