diplomacy can be good but it can also be bad depending on what we end up being bound to. Such as our promise to Ukraine that we would assure their security if they gave up their nukes and bombers, or the deal we are making with Iran or many others that have been made that just assures we will be fighting a war down the road, but making threats that you can not carry out is counter productive. think about it what can the us do that would equal "severe consequences" to China? not much and Xi knows it. Far better to not make any threats than to make ideal threats that everyone knows will have no effect and most likely do more harm to the US than to China. What would I do? I can't say since I am not privy to all the information I would need to say. However one thing for sure I would not make ideal threats and I would fast track
1. restore US energy independence and become a net exporter of oil and Gas
2. cut the red tape and even give no interest loans to get critical manufacturing back to the US such as our medicine and computer chips and place tariffs on imports of such to protect our vital industries
3. build up our military and get ready for war (which hopefully will not come) and knock off all the PC garbage. Our military are our best and should be given our best with the sole purpose of being the best fighting force possible
4. secure and control our boarders to keep insurgents from other countries around the world from coming in that mean us while allowing a controlled immigration of those who want to be come part of our country for our betterment