China will need to rely more on its own market and less on exports. Thats what true world powers do. Look at the US and india. They have trade deficits but are still big economies. Export-dependent nations can never be world powers because they are dependent on the willingness of other nations to open their own markets to them. And china in many ways, cheats the system (closing its market and subsidizing a lot of companies) while it expects other nations to open their markets. And this has been going on for decades now.
The problem is that china wants to keep its ineficient and heavly-indebted state capitalism economy, prefering instead to keep growing by exports and debt. it doesnt want to privatize its SOE, which AFAIK continue to constitute a large portion of the economy, including most of its large companies ( i remember reading in 1993 that the chinese SOE were white elephants. Many of them probably only exist to keep people employed. They surely arent as well managed as private companies) and reduce the weight of the state in the economy.
This unwillingness to reform, coupled with the growing movement to close markets to china in the US, japan, india and even somewhat europe, will end bady for china, no matter what people in this forum may think otherwise.
The only thing true in your paragraph is the very first statement.
What true world powers do not do is becoming heavily indebted and inflate or devalue their currency in massive printing because that is time to time, and history has shown, it leads to the fall of the empire. Romans invented this when they started reducing the silver off their coins so they can create more coins for lesser cost to finance their failed military expeditions in Europe and against Parthia.
The majority of Chinese enterprise is private. Not all SOEs are inefficient, some are quite productive and efficient, such as CAC (Chengdu Air Company), CSSC (shipbuilder), COSCO (shipping line). In fact COSCO manages ports around their world, they have a specialized arm that does so. China's dominance in metals, not just rare earths, but also things like Lithium, Gallium, Gold, Silver, also comes from state enterprises. Much of China's airlines are state owned, so is the massive rail and Maglev network.
All over the US and the West, Japan and S. Korea, there are corporations, even if stockholder owned, that heavily rely on government contracts, subsidies, and other favors, such as the Fed buying their falling stocks and unpayable mortgages. These money losers, called zombie companies as they are called by investors, are everywhere, and they are propped up in the belief that they are too big to fail. No better than SOEs, maybe even worst. Add to that, how many companies have also run under because they cannot compete against state subsidized corporations from another country?
