Yeah it does actually.
Trade deficit has nothing to do with finance, just means imports are greater than exports, that said its easy to have when imports are vastly cheaper than than current goods on the market even with tariffs. As for selling assets or using debt, that is on the individual, not a national level, and individuals have the right to take the financial strategy they deem is THEIR best interst.
America's higher standard of living isn't due to credit, credit helps hide the decline of real wages and the depreciating dollar, but the lower cost of goods due to specialization of production and international trade has allowed Americans to get by on less money, which has hidden the decline of real wages and the depreciating dollar. You are conflatign two different actions.
China can import all it wants, eventually they'll need to find people to manufacturer to, they'll need to trade, they need to finance their own debt, just like everyone else and they'll find themselves at a cross road. Long term good for them is they don't control the world currency, like the US does, so they are forced to be economically responsible, unlike the US.
No one in developing worls care about sweatshops negatively, they are beneficial for the populace, its only 1st world liberals that actively campaign to close down these economic improving avenues for those in less developed nations, and as reports show this often leads to kids and women having to smuggle/deal drugs, turn to prostitution, or crime.
