Yes of course. We did that over a decade ago in Germany - a construction company was owed 30 million euros from the government of Thailand, so our police seized the airplane of the king at the Munich airport, and in 2005 we did the same for a collection of debt against Lebanon [1].
So to be clear, you would say that China's standing and general compliance to perceived hostile action against it is the same as Lebanon or Thailand? IMHO, that is very naïve.
That opinion is consistent with the link that I posted - smashing a satellite into debris for kicks. But it does seem to be inconsistent with taking your above "seize assets" suggestions seriously.
