China is NOT the largest investor in America unless you consider treasuries as this investment.
Most of the "stimulus" money in China went directly in their stock market. I don`t dispute your analysis of the future - but in the near term, a correction in the Chinese market is most likely to happen.
Believe me - a US stock market correction will bring down most of all the others along with it.
If you don't recall, it was the correction of the Shanghai Composite in Feb. 2007 along with the Enhanced Leverage Bear Stearns funds falling in Dec. 2006 that kicked off the entire economic tsunami. The first major cracks in the credit markets struck in July 2007. China CAUSED OUR CORRECTION, NOT the other way around.
The U.S. market crashing subsequently DID NOT hurt the Shanghai Composite further. It was sheltered because it had already declined and they have massive domestic consumption growth.
Anyone who thinks that China cannot replace the U.S. as consumers of their own products has CLEARLY never been to China. They are MUCH MUCH more materialistic and hungry for comfort than we are, because unlike us, they have known starvation and hardship in their own lives.