In China, the days of working for ration coupons and room and board are long gone - along with most elements of communism as a way of organizing the economy. This is why China's economy has advanced so rapidly - unfettered competition in a lot of areas. However, it is still very poor, which is why US exports to China are pretty low, relative to US imports from China.
Nonetheless, China's economy is much more open than Japan's was at this stage in its development. This is why China's imported $56b from the US in 2006, whereas Japan imported $59b. It is also why big name American brands like McDonald's have a huge presence in China, with 800 stores in place and hundreds more on the way. The fact is that China is now the biggest or second biggest Asian market for a lot of American products. It will remain this way only if it is allowed to grow. Across the board trade sanctions will lead to problems for (1) American exporters, who will see slower demand for US goods due to a slower Chinese economy, (2) American corporations manufacturing in China and selling in the Chinese market, who will see slower sales from a weaker Chinese economy (Procter & Gamble, Kraft, Colgate, Avon, American Standard - you name it - it's there), (3) American manufacturers, who will have to seek out lower cost locales for their plants, and perhaps split production between plants in China for non-US markets and plants in Indonesia for the US market, and (4) US consumers, who will see higher prices across the board, leading perhaps to interest rate increases, due to higher inflation.
By the way, if you think China is one massive slave labor camp, perhaps because of the low wages, what would be your take on India and Africa, which have lower per capita wages, because their economies are less free than China's, leading to relatively slower growth?
Why don't you join the Fred Thompson campaign?
American companies will only sell in China until the Chinese have completed stealing their trade secrets and have set up Chinese companies making the same thing for the Chinese market. It will be very profitable for the current crop of CEOs, who will have retired on their fat bonuses and stock options before the troubles are seen