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Further, you are likely to get people to rally against China's spying, whereas a significant fraction of Americans want you to be spied on (because they can't distinguish between the people and their government).

The American government is not going to steal your company's secrets and give them to other companies, the Chinese government in fact does.

The US has also engages in economic espionage.

Dont be so sure. Plenty of retribution can be achieved online and unlawfully