Isn't "If they're not willing to play fair, then _we_ must play fair" the core of of US philosophy? It certainly seems to be the standard imposed on US civil rights leaders and the central message of the big speeches in superhero movies.
I'm saying that it makes no sense to lose on purpose just to say you "played fair".
From that perspective, the most important thing the US can do is keep an open communication channel with people in China so that they can ultimately see the error of their ways and come around to a US way of thinking, and cutting off communication with people in China is making the US more like China. It may be a self-righteous, egotistical, or even completely delusional way of looking at things, but the officially stated goals of US foreign policy frequently are.