[knowledge102]

I agree trade deficits aren't necessarily bad for the economy. Lower cost of products means more efficient use of resources, lower cost for businesses and consumers. There are negative too, like how U.S. employment loses out since Chinese companies out compete their U.S. counter parts to death (although competition can be healthy) but my main argument isnt that.

The biggest issue about trade deficits with China is purely economic, it political/strategic. The trade deficit with China helps China grow in power. Their economy grows, and with the huge influx of taxes, they are investing in their military and foreign influence operations more and more.

Is it worth the economic benefit to cement the U.S's biggest strategic threat, who is also a brutal dictatorship? The long terms negatives, may outweigh the short term benefits.

You also bring up some good points. Any action against China back then could have hurt the U.S. as well, and our course of action may have been the lowest risk path, and arguably the lowest risk path may be the best one.