The entire western world should start a massive trade war against China and by that mean imposing 100% tariffs on goods imported from China, ban all Western Based Tech companies from doing business in China and impose massive sanctions as well.
You are economically illiterate.
We should treat them the same way we treated the USSR
We never did what you're describing, and American companies never had such a massive foothold as they do now. And the USSR never threatened to overtake America like China is now. In fact, has already done.