China's Manufacturing Production [1] and Industrial Production has increased year-on-year for the past 10 years, excluding abnormal events such as Covid, so where are you getting your data? If you meant to say that they are transitioning to a higher level of manufacturing, instead of the sweatshops they were associated with in the 90s, this is true. But it was the low-level manufacturing that allowed them to build up both the capital and the skill necessary to advance further and further.

Hell, you've got a naval empire (the United States) that is currently unable to come even close to the Chinese ship-building capabilities - their output dwarfs the US by 232x [2]. It's not something that happened overnight and it's certainly not something that was strategically planned out 30 years ago - it is a slow process that started with low-level outsourcing and allowed China to grow into the behemoth it is today.

Sooner or later the US was going to have to deal with this fact and it seems like that time has come. Whether or not there's a plan, whether or not it will even work - I have no clue, you have no clue and neither does anyone on this forum.

Also, to counter another point you made - "When we talk about these trade deficits do we include streaming services, television shows, films, games and whatever else?" - you can't fight a war with an economy based on streaming services, TV shows and games.

[1] https://tradingeconomics.com/china/manufacturing-production

[2] https://www.americanmanufacturing.org/blog/chinas-shipbuildi...