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China's ability to produce goods at ridiculously low prices makes it a difficult country to avoid dealing with. Even if we could develop relationships/facilities with other countries to supply cheap labor, China will be able to undercut them. Their population can absorb a lot of manufacturing while requiring very little pay.
Technological advances going on in China are skyrocketing (pun intended) and that can only serve to increase their economic and political power. They are trying to change their image from one of a low tech/low cost manufacturer to one of both low and high tech manufacturing.
I have little doubt that the preferences we show to them now will not be taken into consideration when they have the power (whether it be business dealings, international affairs, or whatever) so I doubt we are building much if any good will. Perhaps it's just a strategy to decrease bad will by not pissing them off now. I could certainly see our shunning of them being held against us in the future.
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Strive to be more curious than ignorant.
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