Well, China has been soaking up land and hard assets even in the USA as well as hoarding gold and other precious metals. You are correct that the calculus regarding the winner/loser in regards to a fiat currency war is the debtor/debtee. In this case though, it is not like China has not seen this coming or failed to prepare.

Even though their T-bill holdings will surely decline in relative value, their overall purchasing power as the USD devalues is likely to increase making devaluation of the USD a Pyrrhic victory at best for the USA bankster elites.

They have also moved recently to set up a new gold-back currency for resolving international trade. Ofc the question is, who trusts the CCP to be proper custodians of the actual metal reserves. They undoubtedly hope their new currency will catch on in an age of fiat hyperinflation, thus giving them immense future political leverage over holders of their gold backed notes.

It will be interesting to see how it plays out.

For who could be free when every other man's humour might domineer over him? - John Locke (2nd Treatise, sect 57)