I wouldnt be surprized if we losed, you gotta remember they have a Billion troops and could probably pull up more out of their population. What does America have? 3 Million Soldiers, over 2 Million of them overseas in some other country, that leaves less than a million American Soldiers to defend America. All thank's to the UN America looks like the worlds Police Force sending "peacekeeping" forces to over 150 countries around the world. Looks like an Imperialist Empire to me.
China does NOT have a billion troops. Their population is about a billion, but this includes everyone from newborn babies to very old people. Only people in their 20's and 30's are likely to be in active military service except of course for officers. Moreover, because of their one child policy, their population is getting older at a much faster rate than ours. There are not enough newborns to grow into military age to replace those becoming too old to serve.
Now that I have that off my chest, yes, China has a much larger army than we do, and we are spread kind of thin right now, but if and when China ever started a war with us, a lot of the BS operations the US is undergoing would go the way of the dodo. Seriously, do you think we'll care what the hell is going on in the former republic of Yugoslavia while we're in the fight of our lives? In case of a national war, the US population would also be more galvanized to sign up for military service, and the fact that we're heavily armed would finally be demonstrated to be one of the huge reasons we're free.
As far as supplies; well, it might be a little tough at first, but capitalism being what it is, I have the feeling that some enterprising American would be able to take advantage of the situation and supply anything we need, for a slight profit. Laws that currently restrict production would also be lifted in case of a national emergency. We have the natural resources to take care of ourselves, and once we're no longer hamstrung by stupid laws (like the ones that tell us we can't drill for oil in our own country) we'll be much more able to do so.
My real fear is more of a situational one. If China ever invaded the US, I'd see a Red Dawn type of scenario, where average Americans would step up to the plate. The Chinese would have no chance of ever taking us whole, and they'd die by the thousands to the point where their numerical advantage would be all but nulliffied. They might take Kalifornia, but who the heck would notice the differnce anyway. If, however, they ever decided to invade Taiwan, then we'd be stuck trying to defend a far away island dominated by the chinese coastline.