China came late to the industrial game due to Qing Neo-Confucian inertia. They were then held back from development by civil war and the "warlord" period, the Japanese and WWII, and the communists who perpetrated the greatest genocide of history.
They are now, after developing a sufficiently malleable and brainwashed population, getting a handle on industry and technology. They are flush with cash and feeling their oats.
Taiwan, which follows western ideals/values more closely than China's communist regime is our ally (think a huge N Korea, a tiny S. Korea, with water for the 38th parallel). This has roots as far back as the 19th century. We have betrayed Taiwan several times due to "realpolotik". (Taiwan kicked out all the American diplomats, some at gun point, in the mid 70's when Nixon normalized relations with China).
I personally will cry a river the day we cough up Taiwan to appease the Chinese. Because it's another domino falling the wrong way.
Fear the rise of the nationalists in the Chinese Military Acadamies, if this occurs, and morphs into something along the lines of 1930's Japan, we are in for a boatload of trouble. Already it is easy to find acts of Chinese aggression in SE Asian news.
We should start reopening rare earth mines here in the States (previously closed, couldn't compete with the chinese) as China has already choked rare earth supply to Japan for political reasons. (for you Green types, you will never get green without rare earths)
Slap tariffs on imports, review all mission critical components of the military and defense entities for 100% domestic sourcing, look em in the eye and know them for who they are. Negotiate as needed. Start keeping the best technology closer to home. Try to instill some patriotism in big business (cynical laugh), never mind, just a bit of hope there.
Update 05'22/12: Chinese counterfeit parts in American military equipment:
From BBC News
Re ignite our space program, overtly to go to the moon for H3 but also to stay even with China's weaponization of space.
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