I'm not kidding at all and I also don't expect all the military buffs out here to agree with my views toward military spending.
Despite this so called Chinese military threat, the largest threat that China poses to America is through the financial/economical realm. You see what's happening in Europe right now with the sovereign debt crisis? State governments like California, Illinois, New York and New Jersey are next on their list. If you don't have money, you can't fight war. Unless you propose that US just puts a gun to Saudi Arabia's head and demand free oil. I don't think that's something you want to do in long term.
And as I said before, the Chinese economy is on pace to match the American economy in total GDP in the not too distant future. Consider what US defense budget have to deal with (war cost, weapon procurement, maintaining a vast nuclear arsenal, maintaining oversea bases, maintaining weapon + top notch training, salary/benefits for servicemen, lifetime pension for everyone who got injured in Iraq/Afghanistan) and compare that with what the Chinese defense budget have to deal with (weapon procurement, maintaining weapon + training, salary for servicemen). And now, when you consider that the salary+benefits for 1 million PLA officers is much lower than that of 1 million American servicemen. How many times more does US have to spend on its defense than China to maintain an absolute advantage that right wing hawks advocate? Do you want to pick up that kind of burden?
How about this then. Let's say that by 2025, China reaches parity with US when it comes to GDP, but is in much better position in terms of debt burden. At the same time, India goes from 1/10 of US's GDP to 1/4. If US wants to maintain absolute military superiority over these 2 emerging powers, how much extra it would need to spend on defense over these 2 countries? Let's just both China/India spend around 2.5% of its GDP on military. While looking at this, consider that personnel cost will be much lower in India/China, because American soldiers are much better compensated (+think about these monstrous pension bills that the Pentagon would have to deal with post Iraq+Afghanistan).
I'm just trying to look at things realistically while also looking at the mounting health care cost, social security cost + unfunded liabilities from all the retiring gov't workers.