China's navy isn't as quite as ill-prepared to handle a carrier battle group. For one, we know that they were purchasing Russian built Sovremeny-class destroyers which are designated as carrier killers, and that was going on since the latter half of President Clinton's second term. Doubting that they just stopped during President Bush's two terms, the question is this: If no other navy has an abundance of carriers in their fleet (we had about 11 or 12 active last time I checked, and the Brits had 2 or 3), why would they purchase ships whose primary purpose is to engage and destroy enemy aircraft carriers?
Let us not also forget the whole Airplane collision debacle during the third month of Bush's first term, where a Chinese MiG and U.S. cargo plane collided.
Even if such a battle erupted over Chinese airspace, if dragged on, I may wager the Chinese would win, first off, due to homefield advantage, and also the fact that as they DO have most of the world's manufacturing, could easily out-massproduce aircraft without the distances to replenish the front lines being too great. Then, factor in how the U.S. is spread out all over the world, already engaged in two fronts in Iraq and Afghanistan, and that if we did get into an engagement with China, that not only do we bomb factories that produced day-to-day items that we used, but also the rest of the world, who by the way, does not hold us in such high esteem as it is. Countries who also depend upon Chinese goods as part of their everyday life may rally to her defense.
No, the best way to get out of this potential quagmire would be to make this ultimatum to Beijing: You are free to sell us your goods, however, they must be manufactured in the United States (or at the very least, a certain percentage of the manufacturing). The alternative would be a gradual tariff which would have a subtle, yet annual increase until a certain percentage has been reached.