This can be the result when a country engages in economic warfare, which China has been doing for several decades now. They saw how effective it was in the US v USSR confrontation and realized that it would be a long time before they could match the US' war-making might. They also saw how in WWII, the US was the only remaining manufacturing base still standing. So they instead developed a long-term (read 40-year) plan to take over status as the #1 world super-power.

1) Control your own internal economy to such a point that there exists excess production that may be used to undermine production capacity from US factories.
2) Control your populace via socialism, engineering them to go along with your policies that ensconce your power. Ruthlessly punish dissent.
3) Control the media and information in order to control internal demand. Factory production has to be used to target one's competitors - not to satisfy the wants of the people.
4) Control your monetary units/currency by artificially pegging them against your primary targets so as to always ensure your prices undermine theirs.
5) Bully, threaten, cajole, posture, etc. in order to win Most Favored Nation trading status in order to bypass tariffs and trade quotas.
6) Ignore intellectual property rights.
7) Target the industries of your opponent one at a time, with an eye on strategic materials such as steel, rubber, aluminum, plastic, etc.
8) Maintain a trade imbalance so you are both driving out their manufacturing and acquiring a legitimate reserve of your enemy's currency. This two-prong attack has the benefit of giving you leverage in the international monetary arena with which to conduct favorable trades in addition to giving you economic leverage with which to subtly threaten one's opponent in matters of international diplomacy.
9) Take advantage of one's opponents political system. Fund political candidates who can be easily manipulated to further hasten your goals.

This kind of strategy would never work in the United States, because it requires a completely foreign (pun intended) social mentality and history. But it has worked very well AGAINST the United States.

The one main question is this: can China prevent it's own economy from imploding after taking down the United States?

Unfortunately that has been true for some time. And apparently neither the government nor the populace cares.

Most of the rare earth elements are in China. As for steel, the US labor unions priced themselves right out of the market.