The US economy is not going down the drain. (?)The US economy is going down the drain. Biden and his propaganda machine can say what they want about "China's collapse" but its the US that has been left with no cards to deal with China
Biden is trying to have it both ways. To get concessions from Xi while keep taking actions against China. Tough luck, Xi has called his bluff
But regarding China US trade, you are right that US is not particularly fond of trade wars ( esp the current administration). US wants to scale back the trade restrictions/ tariffs but Biden doesn't want to look weak or wants China to do some favors.