I think its time china loosened gun laws a bit, maybe not to the extent of the US but something like Canada, where they allow firearms ownership restricted to 5 round magazines, semi automatic only, and contingent on extremely stringent background checks and training like we have in Canada.
War is now very much a real possibility and its important China gets a reasonable proportion of its population familiarized or accustomed to firearms. Also, get Chinese people to stop spending on stupid Canada Goose LV and buy some Type 97s or bolt-actions to help domestic manufacturers instead.
Hopefully they can also loosen restrictions on abilities to buy NVG/thermal, since civilian demand can drive economies of scale. There doesn't have to be full militarization but something to extent of Russia would also be good. The US can quickly draw on massive man power since even its civilian population is reasonably militarized. Also as mentioned earlier, most US tech development in small arms comes from the private/civilian sector.