Trump's used the nuclear option, which may well work in the short term but in the long term this has shown China and others that they have to get rid of their reliance on US tech and companies as a matter of national security.Indeed. Trump's heavy-handed approach in recent weeks seems likely to have far-reaching implications, and presumably the results won't be favourable for Western businesses hoping to expand more into fast-growing Asian markets in the years ahead. He's shown that any business with strong connections to the US can't be relied upon to be an economically rational trading partner, because the US is now demonstrably willing to conflate national security issues with trade policy.
That policy is also putting US allies in awkward positions. Here in the UK, we are faced with questionable demands from a long-time ally (the US) and thinly veiled threats from a big investor (China) if we comply with those demands. Presumably other allies such as Australia feel similar opposing pressures. The only rational long-term strategy I can see for nations in this position is to be clear that they will always make their own strategic decisions on security matters and which global suppliers to use for national infrastructure projects (and then to actually do so, throwing a proverbial elbow at the US if necessary). At least that way you maintain some credibility with future governments around the world as a reasonable partner.
In the meantime, it seems that the current hostile stance toward China from the Trump administration in the US is hurting the global economy, and ironically it also seems like US consumers are the ones ultimately paying most of the cost of those trade barriers.