China thinks USA is a threat because it fears USA will intervene in Taiwan in case China uses force to invade Taiwan. USA feels should China attack Japan or Korea, for some reason, USA has to act. USA has 13 aircraft carrier groups which are loaded with nuclear weapons and superior to anything that China has, just as a show of strength. Even in wildest dreams Chinese will never think of attacking mainland of the US soil unless if they want to get wiped out. China on the other hand can surely destroy one or two US cities, which US fears naturally.
In essence, THE PRICE OF WAR IS TOO HIGH without any commensurate benefit for both parties, HENCE WAR IS UNLIKLY, TRADE WILL CONTINUE nevermind mutual suspicions.
