China got nothing to lose, even if US imposes a complete ban China will sell their products to someone else but probably for lesser profits. But the story of US is different, they can't really sustain on their own because the salary is not same as China so the government has to lower the wage policy which again will affect their citizen.
And this is not new; it also existed in the Biden period, but now it is exposed due to the unfair rates, which is probably happening due to the ego clash of an individual now affecting the whole country in one way or another.
It's not like China won't be affected at all. The USA is a big market for China and the rest of the world. You can sell something at a better price to the US people. Yes, people in the USA will indeed face the consequences. China is the factory of the world; you can produce anything in China at a very cheap price, while the USA cannot produce the same product for the same price.
If the USA decide to produce everything on its own, then either they will have to minimise the cost by lowering the salary, or they will have to sell the product at a very high price. No matter what the USA says, it's not possible for them to produce everything on their own.