This topic is bordering on science fiction

How can the Chinese miners and pools filter out USA traffic and deny foreign transactions? Is this even possible to segregate an entire country or continent from the Blockchain?
And even before we even reach that stage, what difficulty would be involved in the Chinese government physically tracking down the owners of all this hashpower before attempting to bend them to their will? There's likely a significant number of people involved. And how would they prevent word of this getting out, giving the community a warning in advance, if it was happening? Not exactly the easiest thing to keep quiet on the internet, again considering so many participants. Someone's bound to spill the beans.
Pure fantasy
There are only a few major mining pools to deal with. So I don't think that the Chinese government would need to track down every individual miner. Besides, I don't really think that mining pools in China actually consist only of a huge number of small individual miners. I rather see these pools as big mining farms, not pools in the strict sense of the term as it is used in Bitcoin mining. Further, you seem to address only the points which you find easiest to challenge. What about the case when the majority of Chinese miners decide to retaliate by raising the fees on certain transactions entirely on their own (which I spoke of earlier)? But please don't speak about being rational since in that very case it will be perfectly rational to raise the fees for a certain group of Bitcoin users from an economic point of view...
Governments are doing
this every other day, so why should ordinary people not do essentially the same, though in a somewhat reverse way?