Is it really good for Ecuador to trade with a country that bullies its way like that?

China and others have their own set of problems, but they might make for better trade partners than the U.S., and China in particular is really lobbying itself as an option... lots of multibillion dollar government works and stuff that usually went to U.S., Europe, Japan or Korea by default are going to China now.

And Ecuador is now selling its oil to China, not the U.S.

The U.S. is losing control of its "backyard", which used to be economic colonies.

However, Ecuador is uniquely tied to the U.S. by having adopted the dollar, and the U.S. still imports twice as much as China, so yes, this will hurt.