Authoritarian states stealing advanced technology will be multigenerational challenge, but it's a solvable problem. But we must stick our values while we solve it.
The first thing to change the cost/benefit analysis of theft. This means evidence based prosecutions conducted transparently with real jail sentences.
Technical solutions can help. All business producing innovation need long term high quality logs for all activity (you need to know who downloaded what software source code and when)
Perhaps the most difficult to overcome problem comes from Patriotic Education, which is state sponsored brainwashing starting from kindergarten (since 1990) leaving a potentially indelible effect on the psyche of graduates of the Chinese education system. A well rounded study of history and understanding of national strategies is needed to see through any government's propaganda (but the propaganda from the government of China in particular). This study is something we all can benefit from.
Every culture agrees stealing is wrong. Threats and coercion are wrong. On this issue the moral high ground clearly belongs to the US. But we need to be careful to always keep the moral high ground and never alienate people who have done no wrong.
The centuries old idea of letting people into our country to work and by adopting a few values become accepted as as American as any other is a powerful global piece of soft power. But powerful nations will always try to exploit to cheat America out of the technology it develops.
We must understand China's long term strategy and fight back using our moral high ground, which includes a transparent legal system. We must see through China's propaganda (it says it is not a perpetrator but instead a victim of hacking. The truth is, it is both.)