Why not? If they reach a point where they'll have their economy destroyed, I'd bet on them responding in kind.
Also, I wouldn't be too quick to dismiss their ability to suffocate the us if they no longer have an economy to lose. They're certainly in a military and geographic position to enforce a trade blockade, one way or another. If china really wanted it, I think they'd be more than able to severely limit trade between asia and the us to the point of destroying large parts of the us economy.
Since China will likely not back down, I think an economic MAD will inevitably occur if the us insists on burning the only stick it can still use.
Classic tools that they may actually consider include:
Dumping US treasuries. Making life for American companies difficult through regulations and inspections. Limiting rare earth exports.
All of these have a cost on them as well (just like how most American tools on China have a cost on America), so they are careful to implement them.