Hopefully not. A healthy competition is better than Microsoft monopoly. If China could spend billions of dollars on an open OS and make it compatible with major windows applications, it would be better for everyone. This is challenging because it involves huge amount engineering and testing effort, and Microsoft/US is likely to use restrictive patent/technical standards to contain it. But China is probably the only one with the ability and willingness to make it happen.

In the short term yes. In the long term, i'm not so sure. If no revolution take place in China, they might come out stronger in ~20 years.

[edit] Also this trade war is gold for the propaganda. While the wealthy/educated people don't buy it too much, it helps Xi and his government with the "mass", thus strenghtening his power.

US will get its head bitten off. China still does business with the rest of the planet. Trump's "us or them" at some point will lead the 'free world' to say a royal "screw you, we go with them".

I disagree with the way that Trump administration is handling things. Making more noise to cover the previously-made-noise is a downward spiral/slippery slope, and he's on it.

China (aka Chinese People) will not suffer, because they will just not. They won't feel the 'pain' of losing 20% of their income if that happens. People living in the USA on the other hand, they will feel a 20% drop much harder. It is a sprint for Trump administration, but a marathon for Xi's and Vlad's administration. I fear that we haven't seen the worse part yet.