Here is the reality, if everyone in the US government had your point of view, the actions you would like to see happen would have already happened. But the reality is, Paulson and his team do not have your Hawkish views. If anything, they're going there to press China to change course of action so as to placate those in Congress with similar views as yours in regards to trade (and, in regards to China, many of them are democrats) until the threat of tariffs subsides.
Also, the pressures of globalization, places pressure on those within the US to distribute wages in such a way to reward those who educate themselves. For example, gone are the days when a company has to train a machinist how to convert compound fractions and pay him the same wages as a person who knows how to write computer programs.
It is not uncommon in America when counting overtime wages, for one worker who never got passed algebra to make more money than the guy who had to study calculus (or develop applications using C++).
The last hold outs, are the long shoremen. Of course, it's much harder to subject them to foreign competition than those in manufacturing. Typical long shoremen make over 100k/yr without overtime.
Opportunities in America is significantly more abundant than in most of the world. The key answer is, how hard are you willing to work. Yes, gone are the days that a guy can just stand next to a milling machine and make $40/hr including benefits and then take it easy at the local tavern after work telling fish stories. Those that want to earn a good wage in America (and American's still have the best wages), have to put in alot more sweat. And that my friend, is the reason why those in the administration don't the "backbone" to push for tougher action. They themselves are successful, risen through the ranks through hard work, and can't see why others can't do the same.
Companies like Microsoft pay very good wages.
I would add though that the reason isn't merely to placate anyone.
If we take a stance on China then the very stuff you cite becomes more of a viable reality.
The notion that one can just work harder and make it is a BS argument.
I am not arguing against education or for laziness, but there is more to it.
There has to be a measure of opportunity for entreprenuership. Once in the game then smart and hard work apply...
The answer isn't all in education. I know tons of MBAs who can't get a job to save their life. I know Phds in the same boat.
There is a much larger economic issue at hand.
Regarding that in particular I believe you haven't the foggiest idea what you are talking about.
The whats and whys (or why nots) are not because its not good economics.
There is a fundamental economic change that needs to take place. Hence they are hounding China because that is where the change needs to take place.
There is a fundamental change that needs to take place, but at the same time there are many other issues at hand. The government wants the change. The people want the change. Even many in corporate America and even many who heavily invest in China want the change.
On the flip side there are other issues such as security and political concerns. China is a very unstable country hence they are being handled with kid gloves.
The US government sees its interests in changing the way China does stuff. At the same time they don't see it in their interests to spark a riot in the process and create substantial political or military problem.
Somewhere in between point A and B is where they sit. No one is talking about 'cutting off China', at least not entirely, but not very many are satisfied with the situation either.
They are not taking this hard line with China because all of the above are the package we are dealing with.
China trade relations are the worm in our apple. How to get the worm out of the apple without demolishing the apple is the trick.
Yes, but only because they are corrupt...and devoid of American patriotism.