> They have won the current round of propoganda

No, they have won the current round of foreign relations. Threats to invade numerous allies. Blatant war crimes like murdering random people on boats. Violating established and signed trade deals left right and centre. Openly soliciting and accepting bribes. Kidnapping foreign countries citizens and holding them in inhumane camps. None of this is a matter of "propaganda" - it's a matter of actual actions the US is taking.

> The leaders there know that China isn't exactly a friend of liberal western democracy.

Indeed, but this has never been a prerequisite for trade with liberal western democracies. See for example the gulf monarchies we trade with.

It is pretty much a prerequisite for extraordinary actions like successfully asking liberal western democracies to restrict trade though, and the US no longer meets it...

> They have won the current round of foreign relations.

Which is to say Trump failed at the current round of propaganda. If he had won this round you would excuse all those things.

Being a friend of liberal western democracies is not a requirement for trade. However it does influence how trade happens.

>restrict trade though, and the US no longer meets it...

Again, the US lost the current round of propaganda.