Ignoring the obviously idiotic comments by some folks, we can absolutely cut defense without cutting jobs. We can even increase defense spending on equipment (while maintaining overall defense cuts) which would stimulate job growth. We just need to do things radically more efficiently. Anyone that has any involvement with the senior leadership of the military has a feel for how much money we waste annually on things like conferences, trainings, administrative costs, contract costs, etc.
However, I dont think China is being benevolent and looking out for US citizens. I think China is stirring discontent, trying to get us to slow defense spending so they dont have to keep up, and is also not a little bit concerned about the debt we owe them. China may want to heed their own words of caution with regard to 'taking care of' their own people...at least where 'taking care of' their people doenst mean rounding up dissidents and imprisonng them.