There is a way to trade with China that gets the results we desire while actually doing damage to the Chinese 'way'. Two key things must occur IMO for that to be plausible. I am pleased that we finally are hearing talk of China's accounting rules are different than ours but yet we let them have access to our capital markets by being traded on the Dow and NASDAQ. Actually Europe's rules are different too BUT here is the key difference between their situation and China--AUDI...T STANDARDS. If you think a publicly traded Chinese stock's financials are 'real' than you are living in lala land. Access to records and even key individuals can be an issue on the Mainland to the point I would argue that their reliability is if not non-existent at the very least questionable. Deny access to our capital markets and you will see Chinese entrepreneurship begin to dry up. Going public in the US markets is the most expedient way--and sometimes the ONLY way--- for a Chinese company's founders to be able to extract value for their work that is equivalent to American entrepreneurs access to wealth. Second and most importantly designate certain industries and products as "key" and tariff those products with extremely high tariffs. Then use those tariff funds to finance tax breaks and other incentives for those items to be manufactured here. The net effect will be to dry up the market for Chinese products and during the transition use Chinese funds instead of taxpayer funds to finance the change. In the long run these approaches starts to mitigate the Chinese 2025 plan to become the world's super power as the financing that the trade imbalance has provided goes away. Not to mention that without access to our technology and capital markets Chinese innovation goes back to lagging ours. Without forced technology transfers as is currently occurring they will be down to cyber theft only.
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