I heard Obama get asked a question at the AFL-CIO yesterday whether he thought China was a competitor or an enemy. I am not very good at parsing politician-speak, but he seemed to answer "both."
How about neither? Let's try "partner in the worldwide division of labor" or maybe "home of a billion people who would like to trade with us 300 million individuals to our mutual self interest." Or maybe "One reason we have full employment AND low prices."