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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.
Considering the US built itself on a foundation of corporate espionage... Well, duh? Everyone does it, including American companies on other American companies. If your technology lags behind others, corporate espionage is the easiest way forwards. Globalization was supposed to slow down corporate espionage by making the technology more easily available (as evidenced by the relatively mundane technology that gets stolen today), but that's unraveling.
Corporate espionage is reason for sanctioning companies, not countries. If your IP is necessary for national security, it should be owned by the government and protected as such. Otherwise, I have no sympathy for private profit-driven companies losing their competitive advantage because of decades of underfunding on their cyber security systems.