This protectionist stuff is stupid. I collaborate with people in China on some of my work and one of them started the project I'm developing right now I'm just expanding the project and making it more generic. Lucky for me, the Canadian Gov is the one funding this project.
The Chinese who come here (to the US) are part of the growing Chinese middle- and upperclass and tend to be the most nationalistic of all. Talk to them next time you get a chance; ask them what they think of democracy and freedom, and they'll likely spout PRC government propaganda about how the "Chinese people need to be controlled." We make them into scientists and engineers without succeeding, and perhaps without even really attempting, to make them democrats. We are potentially creating big problems for ourselves and our western and east Asian allies down the road by equipping China with the skilled professionals it needs to produce the weapons of war to threaten the free world.
As for protectionism, if it really bothers you, perhaps you should complain about China's "luxury tax" (import duty) and government-mandated technology transfers for access to their production and consumer markets. China is easily the most protectionist member of the G20.
Do you think they really need technology? They have a population of plus one billion, and the strongest industrial capacity in the world plus just enough oil reserves. If they wanted to go to war, they could already very well do so as is and cause a really big bloody mess.
Look at Iraq, Vietnam, Afghanistan. All of us mistakenly believed the US's "superior technology" would make those missions a cakewalk. Technology doesn't win wars. People do. People we can reach.
And its not Germany vs France at the opening of WWII anymore. China already have machine guns, tanks and nukes (the horror if either "side" ever used one in anger). Diplomacy through cultural exchange is the best option we've got to prevent a cold war style escalation - and luckily the openness of both our cultures is the end goal we want to achieve anyway, right?
(apologies to all for the walls of text!)
As cabalamat says, I don't think there is anything more you can do to teach someone from China about Western values than having them completely immersed in our civilization. Some of our values must be crossing the waters, mustn't they? - if they really are self evidently superior?
I think collaboration is the best we can do - with the scientists and business men themselves, the people that actually matter, who's opinions people over there respect, not through the government. This kind of ban on collaboration hurts that.
There is nothing secret in science anyway. The US governments secrets on the other hand... - I would cynically agree there is always concern there. Both by US people themselves and the Chinese government:)
It's not that much immersion. I spend a fair amount of time in a college town, and the Chinese nationals, with very few exceptions, work play and live exclusively with other student visa holders from China.
If the West is wrong about our ideals being universal, then our society is no better than others anyway and it doesn't matter (in the long run for the overall good of humanity) if the Chinese conquer us.
If our ideals are relative or subjective, wouldn't that make it all the more important to speak out, as to do otherwise would be conceptual-suicide?
Even if other cultures don't hold my values, I still must value them.
I don't disagree about educating foreign students, by the way. Barring empirical evidence to the contrary, my feeling is that exposure to foreign cultures ought to dampen nationalism in the long run.
I don't get this constant fear we Americans always have that as soon as a country sees a chance they're going to invade us. Mainland USA hasn't been attacked in more than a century. The only place this irrational fear could possibly come from is assuming other countries will all behave as we do.