I don’t think China is in such a bind. That’s not to say they don’t face any challenges. However, their interests just aren’t as contradictory as this article suggests.
China can undermine US power and attract US investors by continuing its rapid economic growth. That of course is not easy. They need to transition away from an economy based on large scale infrastructure development towards growth sectors such as green energy and high tech. They also need to develop better trade relationships with their international suppliers. As of right now it’s clear they’re trying to do both of those things and there are early signs of success.
That said, the US is aware that a more economically powerful China threatens the unique advantages US investors currently enjoy on the international stage. That’s why the US is specifically trying to undermine China’s trade relationships and sanction its high growth sectors.
Honestly though, I think the US is taking a huge risk here that could easily backfire. While sanctioning Chinese high tech might slow China’s growth in the short term, China developing its own independent supply chains may allow it to come back with a vengeance. Additionally, trying to cut China out of international trade deals may cause China to pursue more advantageous relationships that cut out the US entirely.