This is of course ancient history. We've had crude A-sat capability since the Eisenhower administration and an effective program since '85. While the '07 launch was certainly a demonstration on China's behalf, it also took out a rogue spy satellite that would have come down eventually anyway. Like I've said in the past, China's evolving militarily in directions that we aren't. Bully for them.
Between hackers, EMPs and a-sat, we really don't want any part of those people. While I suspect that it could go both ways, I think they could probably turn our state of the art military into the equivalent of our 1920's counterpart, and that's a domain we'd fair quite poorly in.