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They constantly violate foreign territory and are working at devastating fishing industries around the globe. They've been slicing territory off of India, threatening Australia, and promising to invade Taiwan in the next three (but more likely 1.5) decades.
Now imagine how bold they're gonna be when they completely eclipse American might.
USA literally comes into a country and overthrows their leadership. Until China does that I think USA is a much bigger threat to wield that type of power. I don't care about the domestic issues of China but as of now they seem to be of less concern than USA which is imperialist and looks to expand its brand of democracy to the world. China is less concerned about how other countries govern as long as they are able to trade.