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China has been stealing technology and design for decades and got sanctioned. That's what happens.
Demand all you want, but nobody's going to trust you enough to deal as long as you keep advocating for corporate espionage against "trade partners."
Conducting a cultural genocide isn't helping, of course, but really even just the theft of data and technology is enough.
This bit in particular sums up why US is in a panic right now
“Finding buyers for US debt is the top mission of Yellen. From a medium-and-long-term perspective, China is disposing of US debt,” it says. “Who else will buy it? Japan is the biggest creditor of the US but cannot buy more. The United Kingdom is facing an economic recession and sold $30 billion of US debt in April.”
China holds <$1T of US debt. Sure, they're the second largest foreign holder of US public debt, but we could easily replace that debt if needed. The Treasury itself bought much more than that after the 2008 crisis, and we could do it again. Private citizens hold way more than China does through mutual funds and whatnot, and investors would buy more if rates go up.
The real problem is that interest rates for public debt is going up, so we'll end up paying a lot later share of our budget toward interest if we don't reduce our debt load. Those older, cheap Treasuries will be maturing over the next decades, so the time to act is now. I'm in favor of raising taxes somewhat and cutting spending across the board (I think a lot of it is waste that could be caught in audits). But China doesn't factor in at all when it comes to debt concerns.
Thing is that as US will be issuing more bonds there's going to be little market for them. Back when 2008 crash happened, the only reason US pulled through was cause China stepped in to buy enough bonds to stabilize US market. Fat chance of that happening this time around.
Meanwhile, demand for dollar globally is dropping meaning that dollar based economy is starting to shrink. And major US allies are starting to have significant economic problems of their own, which means they're not able to bail US out.