I'd say cut the internet trunk lines to China... period.. end of story. That would seem to be an appropriate response. Blacklist China's internet traffic completely.
@vacri, can't reply directly to you... but here goes.
If China was loading missiles into cargo ships that fire at northern california, we wouldn't continue to let ships enter/leave China. As to the debt that China owns, they're already in a position of playing games with currency and resources to assert a dominant position.
Eventually you have to stand up for yourself. As to the do-dad manufacture costs, well I think we'd be okay if we had to go a couple years without any new do-dads.