We used to defeat Communism by show of force before we started accommodating them by turning over our manufacturing base.
A healthy marketplace does a lot more to appease your neighbor than ripping him off.
If we did that, two things would happen - an instant increase in the price of so many consumer goods that it would depress sales, hurting American consumers and throwing tens- if not hundreds of thousands more out of work. China would further retaliate by calling in our debt (which they may do anyway), with our Treasury monetizing the payout, further weakening the dollar while increasing the cost of foreign oil.
There is no question that China's trade policies are unfair, but they are increasingly unsustainable as their own debt rises and as our economy slowly slips into another recession. Even today, real Chinese GDP (not the fake "reported" GDP) appears to be falling substantially. The real way to fight them is to make ourselves more competitive in domestic manufacturing, production and trade - which means lower taxes, less regulation at all levels, and fewer barriers to entry... none of which Barack Obama will ever, ever support, of course.
As to the $7 billion destroyer, I have to question the wisdom of spending such sums on an admittedly potent (and very cool) defense platform when we're broke. Maybe we should think about securing our national borders first. Can we build a reliable fence for $7 billion?