Can someone tell me if I've got this correct:

China produces low cost goods - ship goods to US
US purchases Chinese goods with US Dollars
US Dollars flow into Chinese manufacturers
Chinese Govt prints more Renminbi and purchases US Dollars from Chinese manufacturers
Chinese Govt purchases US Gov't debt with US Dollars
US Govt uses dollars from sale of US Govt debt to fund social and defense spending
Social and defense spending trickle down to US consumer as wages
US consumers use wages to purchase low-cost Chinese goods