China is not a traditional military threat such as Russia which only postures as a major country because of its military despite the fact that actually it isn't really any threat. Russia couldn't even win a war with a country that was once a satellite of its own. Arguably why does China even need a military when they do not seek conflict for influence?
The biggest direct threat from China is economic and that's what western Europe and the US should worry about, more so how it adapts rather than responds because it can't respond. Gone are the days where China was seen as the cheap labor capital of the world. In 20 years they'll lead every single industry and they'll replace our own.
Europe and the US will meanwhile continue to twist itself in knots over social issues and irrelevant issues on paper such as migration whilst economies flatline and industries fail. Meanwhile China is building roads, schools, universities and infrastructure... and whole cities!
Look at Chongqing, a city home to 20 million people, 1/3 the UK population! Our infrastructure meanwhile is falling apart at the seams in our cities which China would call villages. It takes us 30 years just to agree to build a runway for Heathrow, an airport that has operated at 99% capacity for decades. How can we possibly compete?