We wouldn't need a trade war if we went back to being the well oiled mixed economy we were in the 50's, and 60's. It was a mix of government and capitalism at its best. The government regulated industries, and funded research that few corporations would bother with (due to a high risk to profit ratio, or no profits for decades). Then once the research was complete the government would give this research and/or tech away for free to american companies. Example: Microsoft, Amazon, and Google wouldn't be billion dollar companies if not for the invention of the internet.
Also, the government would fund schools, so that people didn't have to go into massive student loan debt.
But guess who gutted the mixed economy in the 70's, 80's, and 90's? The Republicans.
If China beats us economically, it is because they have a better mixed economy than we do. Pure communism failed with the soviet union. China is Communist with just enough capitalist features to make it not all fall apart.
