We would be able to cut China off if we wanted to, but prices on electronics, clothing, and many other goods would soar, and I suspect it would piss the younger generations off even more, possibly increasing the risk of civil unrest. In the West, Generations X and XY still remember what life was like before the availability of goods reached current levels, but I can't imagine that the younger generations even realise what it would mean to go back.
Besides, you'd probably have to get rid of the post-war generations first in order to get them to agree to it.
Thus, we'll just have to grab some popcorn, watch the show and keep trying to put out the fires, hoping the entire house doesn't burn down. As you say, it's not going to be fun.
It's not about kowtowing. It's about sticking to principles of free trade and the rule of law. It use to be the good guys vs. the bad guys, now it's the bad guys vs. the at-least-we're-not-that-bad guys. What is the point if we show that, if push comes to shove, we're willing to be just as authoritarian?
"Take that, America!!!" seems to get people entertained. Not defending America, there are plenty of Americans wanting to say "Take that, China!!!".
EU folks are bashing US, US folks are speechless at what their nation is going through, India and China are at arms, Australia has Chinese infestation, Japan is the most Sinophobic country in the world, Taiwan is nervous, Hong Kong is decimated, Eastern EU is going authoritarian, UK is spiraling into isolation, etc.
This is not going to be fun to watch.
[1] Vice, How China Tracks Everyone: https://www.youtube.com/watch?v=CLo3e1Pak-Y