Christopher Columbus goes west & discovers 'China'!

WI: When Columbus 'discovered' America he sees a bustling coastline, filled with lights, and as he gets closer, he can make out several fishing boats. He anchors off-shore and sends a boat out to investigate. They find a busy town, with a market place full of produce, and various animal skins, the people there do not speak a language they recognise.
They returned to the ship, almost there when a loud bang sounds, followed by a large splash lands two hundred yards in front of the ship! They just make it back on board as the anchors are hauled up, and the sails are unfurled, as they had south, a volley of rockets streak over-head (though do they know at that time what rockets are?).
Will they find a less hostile area? Can they do trade? If they is a civilisation in North America more advanced than in the south, what chance colonisation!?
 
I'm sorry, what is the POD suggested here? China really being in the position of America? America having Chinese style civilization/similar technological levels?
 
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