Our first act is to revoke our acceptance of China in the WTO and end all - 100% of imports from China. End the income in greenbacks that funds their economy that funds their military build up. We want a signed Treaty between China and an independent Taiwan and demilitarization of any part of southern China within reach to Taiwan. Revoke the Nixon/Ford/Carter/Reagan/Bush/Clinton/Bush fiction that Taiwan wants and deserves anything but independence.
I agree with your points. Sounds like a workable strategy.
In preparation, we would have to make absolute certain that nothing is manufactured in China that we need from a military technology standpoint (even a small electronic sub-assembly for a radar or other system) or from a "vital national strategic" standpoint.
If China abandons all claims to Taiwan and amicably resolves each and every territorial dispute it has with its neighbors in a manner satisfying all parties, then peace and trade have a real shot in the Pacific and East China Sea regions.
If not, there are going to be some serious storm clouds, and the you-know-what will hit the fan Big Time.
IMHO, we should ditch the WTO and the entire Global framework that has grown up like a bad weed that needs to be ripped up. Arm's length trade between totally Sovereign, independent nations is the way to go.
If China gets out of line, they need to be kicked in the teeth. Russia would be well advised to back off, stand down and stay clear.