And why was that an effective punishment? Because the US offloaded it's entire manufacturing base to China so that a bunch of greedy assholes in the US could make a buck off of it.
So yes, the average American has a reason to hate China. China literally took their jobs, and they've never recovered from it. Worse, the "global market" means that any attempt to revive the dead industry in the US will always be out gunned. The average American has been forced to pay the thieves for everything ever since, and anyone who's tried to make a new product in the US has had to deal with never-ending hordes of Chinese knock-offs appearing on Amazon the second they get an initial manufacturing quote.
Globalization was a mistake, and the reason China made that threat isn't because of the asshole in the White House throwing a temper-tantrum. That was just a good PR excuse. The real reason is because China now has a similar problem to the US circa 1980. Their standard of living has gotten too high for the global owner class' tastes and they are at risk of losing their manufacturing base to other countries. (Malaysia, etc.) So much to the point that the CCP is now trying to ban high level workers from leaving the country to train their replacements. (Because China
knows how this works out, having been a previous beneficiary.) China doesn't want to speedrun the US's downfall, and the CCP has no intention of being replaced. They might make a good show of being "cooperative" in the short term, but long term, they'll be forced to compete against cheaper countries, will suffer industry losses and currency inflation, and will gradually follow the same path as the US. Becoming "hostile" towards other countries as they work towards insulating themselves from the global market's whims.
Meanwhile the rest of the world is on-board with some of what China is doing, especially the stuff that cuts the US out of things like international banking
As if China won't follow the same playbook? They've already done the rare earths bit, and as you've alluded to, want to axe the US out completely. What makes you think they'll stop at just the US? It's a powerful weapon. There will be immense internal pressure to use it with or without permission from the rest of the world. Europe's preferences be dammed. Note: The same would apply to the Europeans, or anyone else, given that power. It allows collapsing a country you don't like without firing a single bullet. No country is immune to that temptation.
If there is a cold war, it's because the US seem to want one.
The average American in fact does not want a war, but that matters very little given the massively corrupt government that they have. Their government represents them in name only. (Unless they just so happen to be the small, loud, fraction of them that actively supports pedos.)
Conservatives there need a Big Bad to justify what they are doing.
Conservatives need nothing. They've had something to legitimately rail against ever since the owner class shipped all of their jobs to China. The problem is the owner class, who's convinced them that immigrants, LBTQ, etc. are responsible for it, instead of the owner class wanting to take more of their money. The Conservative's politicians, need no justification either. Might makes right is their justification. As they've already demonstrated with C-COT, killing Americans for protesting, terrorizing progressive cities, withholding congressionally mandated funds, blatantly defying court orders, threatening nationalization of elections, etc.