To be honest, I'm very unsure about the whole thing. It seems like a very complex question of economics that I'm not confident I know enough to judge.
But it does seem strange to me that politics seems to be dividing between liberals who blame Russia for everything that's gone wrong, and populist right-wingers who blame China. I'm not convinced by either. I don't find it plausible that global political developments depend on one country's political policies.
I also think the anti-China position wrongly paints the US and China as some sort of symmetrical rivals. When in reality a lot of China is still very poor. China's GDP per capita is far lower than the US. Ergo the pressures their leadership are acting under and the stage of development they are at is different.
And, rather than thinking, as some in this thread argue, that China can cope with economic fall-out of a trade war better than the US can, I worry that neither side will cope well, and that bad things will happen on both sides.
China in particular has a long history of serious instability and the current peaceful interlude is predicated on a deal where the population concentrate on getting rich and leave politics to the elites.
If this supposed 'economic war' ends up doing to China what happened to Russia after the cold war, with a serious economic downturn, the results might be very nasty indeed (though Russia, unlike contemporary China, actually was socialist, and its failure was largely down to its economic failings, exacerbated by the Reagan arms-race...China has different weaknesses, but not that one in particular).
And China is now a major part of the global economic engine. If it falters, so will much of the West, which will probably cause political instability there. We already had some of that with the last crisis, and it would have been worse without China keeping global growth figures up. Of course I suspect Bannon is partly hoping for precisely such a crisis, as it would be an opportunity for the far-right. Be a great irony though if the end result of an economic crisis caused by a collapse in China is some Western countries going communist [not suggesting that is _likely_ but I do think instability in the West is part of what Bannon is hoping for].