I'd bet on a combination of 1) and 3), more of 3), to be honest, the Chinese Central Government is known as picking losers and winners (which can be seen from the outside as "market forces running their course") and the subdued economic growth can be easily masked with aggressive foreign policy rhetoric, like building some new islets in the South China Sea. Choosing 2) will most probably escalate the dangers of a military confrontation with the US, I don't see the Chinese going that route, war it's bad for business (in most cases, anyway).