One issue is that your comment sounds a bit hyperbolic. For example, China criminalizes thought? It certainly does not criminalize thought as such.
About 'working together with our allies'... Some will argue the 'West' has developed a somewhat abusive relationship with a lot of the world over the last two hundred years. It's not surprising some would look favourably to a competitor, if only to take advantage of that competition to make a better deal for themselves.
Finally, if other parts of the world develop a more advanced IT industry instead of China, how does that preserve Western developers salaries? Are the Chinese uniquely inclined to work long hours for low salaries? Or are you implying that the 'West' would need to prevent nations under 'our sphere of influence' to develop an IT industry so developers in the 'West' can continue to receive their current salaries?