It's not about China (yet); it's about Russia. Rice is an expert...sees the inability of Russia to challenge the US militarily (hence no need for a coalition anymore when invading its neighbors like Afghanistan and Iraq).
Bush isn't in a race with anyone. His people see a void, no competion, and so he's pursuing a brand new American strategy of investing in -blatant- US global military domination.
With tax cuts for the rich...money being redistributed (not to the poor, Democratic-style, but to the US military-industrial complex*, Republican style)...and a new record in deficit spending set in such a short time...."Bush II" is really "Reagan II", only worse.
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*With appreciation to Dwight Eisenhower for his brilliant speech, even though the concept--developing a military-industrial influence over government policies beyond what even he feared so much-- has been much ignored ever since.....