And you're assuming being stuck under the thumb of an illiberal regime hostile to our beliefs and way of life, a regime with a long history of violating basic liberties, of mass murder, and of ethnic (han) supremacy, would stop at trade concessions. I don't believe we could reach a point where we could make tolerable policy changes to appease the PRC.
I don't think it's an issue of us being blind. There are plenty of contributing factors. For one, we are terrible at industrial policy and it's ridden with recapture. E.g. Ford shutting down a battery plant because the UAW demanded (and gov't generally supported) the fact that they'd have to re-hire and re-train tons of UAW employees at the new factory. This is objectively not the way to handle what we believe to be a critical energy supply issue. The fact that it's become incredibly difficult to produce solar panels or batteries competitively, both due to higher wages and more stringent regulations than one would find in china. This is exacerbated by decades of conspiracy to wink-and-nod at illegal immigration suppressing investment in automation, meaning catch-up would be painful and take time. Etc.
There's also the fact that, as it stands now, we cannot replace our grid with renewables. It's also much easier to make a large chunk of it nuclear, but the environmental/clean energy groups have mostly been captured by nuke-hating tree-huggers for half a century now. Objectively you do not want to make all your generation wind/solar because your storage requirements are much higher, because the LCOE numbers people use in their calculations (Lazard's are popular) are notoriously bad, and because storage tech either isn't there yet or is cost-prohibitive.
I am very frustrated by people who 1. try to reduce this to "one simple thing" that they happen to support, and likely supported long before and apart from current issues, 2. people who see it as an opportunity for recapture, and 3. the head-in-the-sand denialists who just don't know or care that America's position and people are threatened by the way things are headed.