What should be done is to be aware of the risk, and that it is very different doing business with China vs. say, Thailand or Mexico.
Of course, wherever you do business, you must take precautions against IP theft and having your product sold out the back door.
However, for China, the threat model needs to be completely re-calibrated. Specifically, recalibrated to assume either that your product will be sold out the back door of the factory under another label, that your IP will end up in a competitor's hands, or that if it is important enough it will be expropriated by the govt either via rules requiring 'sharing' or by state-level espionage.
This is NOT to say that every person is untrustworthy. There are good people everywhere.
The difference is like that between a small rural town where everyone knows each other and leaves their doors unlocked and keys in the car, vs. a gang-ruled favela where you need to watch your back if you step outside. Both are mostly full of good & honest people, with a few problems, but you really need to calibrate your behavior differently for each.
I don't follow your metaphor.
Which is entirely reasonable, but I don't see anyone advocating this nor does the article so I'm a bit confused. Is someone advocating some kind of Chinese pogrom here?
However, when a society maintains such a universal "your IP is up for grabs" approach to business from the smallest fabricator to the top levels of government, and the govt is noticed to have a top level program targeting a region's business, that's not prejudice, it is established fact.
Moreover, getting the word out on such issues is exactly what you advocate; it is a part of the 'spy-vs-spy' people doing their job.
The network of suppliers is extremely extensive, and expecting the CIA to squander time individually contacting every single sub-subcontractor, or even only the set of ITAR-registered producers is silly.
I would go so far as to say that the threat against you even from overt discrimination is less than the threat from our society being undermined by an unopposed attack on its foundations.
For everyday workplace/community culture, we in the US have a long and ongoing history of biases and poor treatment (including in the workplace) of people belonging to identifiable groups that have been singled out as somehow threatening or lesser. Maybe the pattern repeats. Or maybe the pattern doesn't repeat this time, but many people in the group fear it will, and that's not good for workplace/community either.
Since you're the poster, where are you getting this from? I'm not reading that in either the replies nor the article... this feels like scaremongering in the opposite direction.