Arbitrary action such as this is a sign of weakness: of economic weakness, and the fear to no longer be good enough to be the single biggest winner of free trade the US was for most of the 20th century. It's also a weakness of the law: of institutions competent and empowered to specifically define and litigate harmful behaviour, within the existing confines of law, such as due process. Instead, it's executive fiat, directed against foreign companies that have no lobby powerful enough to protect them, and coming from an office where nobody bothers to ask for reasonable explanations, because (last weakness) the guy is incapable, uninterested, and really just completely devoid of any understanding of the rule of law.
Americans already are losing as much as China is from this action. But its only in mindless entertainment that people won't complain about because they fear being mocked for enjoying such things. But if it works, the hits will start creeping closer, and you now need to make sure to stay not just on the right side of the law, but also the far-right side of politics.
Meanwhile, China isn't going to change for economic reasons: countries from cuba to North Korea to, for the longest time, the USSR have not budged in the face of sanctions. A country in the process of cutting off the lifeblood of its status as a superpower of science and entrepreneurship, just because people in rural counties that have never seen a foreigner have decided they don't like them, should really be in a good position to understand how powerless economic interests are against ideology and jingoism.