Is there a future where China uses this as leverage with the rest of the world to put sanctions on the US if we don't transition?
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I don't think it's that simple.
China is a signatory to Kyoto and Paris.
They do care about reducing pollution, and have managed to do so quite significantly in many cities.
China also has quite a bit to lose: many large cities on the coasts, and worsening water shortage problems.
National security probably plays a large role, and I reckon they would prioritize economy over climate, but the evidence implies that they do also care.