The real damage of this trade war is possibly reduced collaboration between the US and China. Hopefully this doesn't increase suspicion to the extent of real war taking place.
Regardless of whether US admits it or not, it has delved too long in racial supremacy, hence it is left to China to neutralise this tendency so that a genuine multilateral world can come about. US tries to replace Huawei, Huawei tries to find alternatives to replace Google, the competition will be unhealthy.
But who will then make things fair for all? Usually no one.
However China is well positioned to champion a cause that leads to a level playing field for everyone. Protectionism is definitely bad and China ought to have enough history of this. If China can't learn this from its past, then Chinese businesses should look elsewhere outside China. There is no such thing as whether China is ready or not. No one is forever ready. There will be slack moments. Thus the fear of not being ready should not be addressed by closure or protectionism. Rather it should be about finding the right ways to compete and win. Through its people, work ethics, products, China needs to speak to the world, calling for an equitable world.
Usually this cause will see China being the lonely one initially calling for an equitable world. But this sort of courage and wisdom will eventually win more friends eventually winning over the US as well. So hopefully China will exercise its wisdom and lead the world to a more equitable one rather than the current one that's solely dominated by one race.