You meant to say 'illegal for US residents." There is an important difference. Even foreigners residing in N. America are ostensibly prohibited by the CFTC from trading certain overseas contracts. Go figure ...
I don't think any of the international flavored ETFs have options as of yet. The Taiwan ETF should be cheap enough to short on it's own.
If you are bearish China, then you must be bearish commodities and Aus Dollar. Therefore short copper or Aussie Dollar.
Doesn't IB allow you to trade Hang Seng Index futures and options?? If they don't, I think Xpresstrade does.
IB lists options on the Mini Hang Seng Index as one of the products they trade in. IB abbreviation - MHI, traded in HK$
to short china just short their US outlet store - WMT. as long as WMT is selling more and more crap, china is doing just fine.