It is often used in the context of bragging rights and, as in the song, trying to grab attention in a crowded, high-energy environment.
The phrase "Niggas just wanna dance wit'chu" appears in the chorus/verse of this 50 Cent track.
Based on the search results, there isn't a widely recognized major song titled "Dance Wit Chu" requiring a formal write-up. However, the phrase appears in popular culture, notably in the lyrics to the song, "Get Out The Club."
It represents a, direct, urban approach to asking someone to dance or connect in a club setting, juxtaposed with themes of wealth ("Gucci, Fendi and Prada") and club conflict.