How about reviving the Superconducting Super Collider that was never completed ? Congress cancelled the project saying "Budget overrun" but it was because of the collapse of the soviet union (imo). They even have the tunnels and everything and also the collision energy is like 3 times that of LHC. So it makes sense to revive the SSC.
And as for the CERN or China question, i don't think geographic position matters at all, it's all about money. If China is willing to spend billions of dollars, then fine let it be in China :)
The SSC was less powerful than what we now aim for. We really need a new machine, for the simple reason that the technology (the magnets in particular) is not existing yet :)
Concerning the second point, it is not only about money. Of course, the host will contribute significantly. But other countries must also commit in a non-negligible amount. And then comes politics. Then culture. Then the mess ^^