What can the West do?
Directly attacking Chinese foreign trade with import tariffs, as Trump did, or retaliating specifically against a company or some big business, as Canada did.
This will somehow reduce China's role in foreign trade by declining exports and even imports, but it will also make the US bleed because dollar demand will fall. The US depends on the dollar, if in any scenario China abruptly reduces foreign trade, the dollar collapses.
An example of this:
When there was a crash in China's stock market in 2015, when the economic and world turmoil effectively began.
The above article is very superficial, but it contains some useful information about the economic effect that China has on the world.
In this 2015 global situation, the dollar has strengthened, as investors seek safer havens and the dollar is seen as the safest asset.
A strong currency sounds like a good thing. But it raises the prices of goods that US exporters sell abroad, hurting their sales and profits.
Even before the dollar's jump, US companies have lately been having trouble generating profit growth thanks to the already strong dollar. As the dollar generally rose, profit growth for the S&P 500 has slowed from a pace of about 10% last year to less than 1% this year.
If China's market continued to plummet, expect more investors – including the Chinese themselves – to seek refuge in US-denominated assets such as Treasuries, equities and cash only.
And if that's the case, it would be much harder for US companies to increase their profits, because the dollar would strengthen even further, hurting US exports.
And ultimately, that's a problem for US equities, because profits will be dwindling for listed companies. As the US depends on a stable scenario in the stock market, because Americans have become highly dependent on the financial results of the stock exchange, the strengthening of the dollar resulted in a lower profit for companies, the share is the price that is priced aiming at the Future scenario, if profits decrease, the company's stock will fall.
This occurred in early 2016, still under the influence of the Chinese stock market turmoil, when I was still following the global financial scenario on a daily basis. I remember pretty much every company was in the red, stocks went down in pretty much every company listed, including the planet's own billionaires, the Bloomberg index of billionaires when I opened it was all in the red.
Now, you can imagine when China's weight was still smaller in 2015 compared to today. And the situation would be inversely proportional, the dollar would not strengthen, it would plummet, because its demand would be reduced by the ban on trade with China.
Fortunately for China, the West will have to do a lot of contortionism to try to find some solution to generally sanction the Chinese economy.
In my opinion there is no siege in China. The situation is just the opposite, the Russians are fully confident that China will hold on to its territorial oceanic rearguard while keeping most of its military assets in the western sector.
This implies the same thing for China, the Russians will hold the position of the Chinese mainland rear and help the Chinese to focus on the current most unstable scenario: the Western Pacific.
In short: While the Chinese maintain a relevant position on the ocean front of the Western Pacific, offering resistance to US and allied expansionism, the Russians maintain a secure position in the Chinese mainland rear.
This geostrategic positioning brought back the rimland(China) and the heartland(Russia) theories under new actors. Before the threat was red (USSR), now the threat is orange (China + Russia).
The Chinese ocean front and Russian transcontinental territory is the biggest challenge for the US since World War II.
Heartland author Halford John Mackinder initially claimed that whoever controlled the heartland territory would control the world, the USSR almost managed to control the entire heartland territory, but its economic inefficiency simply rendered the whole concept invalid, this inefficiency no longer exists, even more considering the Chinese efficiency.
The increasing integration between China - Central Asian countries and Russia simply has the potential to create a new economic and geopolitical order. China has the financial resources, economic efficiency, industrial productivity and skilled labor, the others, to a lesser extent, contribute with labor, but the economic vocation is the extraction of raw materials, eventually such countries will become developed, as was the case with Australia, a major exporter of raw materials and a major importer of manufactured products.