This is bad. This whole debacle has only proven two things: you can't trust China. And you can't trust the USA. Globalisation is slowly going to reverse :(
I mean you should definitely be careful with China, but I don't see how this example is evidence that we shouldn't trust China as it is mainly a response to heavy US tariffs and pulling back from established trade deals. The US seems like the far better "You can't trust them" candidate in this situation.
More like monopolies are bad, be at company, country or currency level.