In one word, China should retaliate, and should retaliate immediately and forcefully. Immediately arrest one or more American CxO level folks on [otherwise genuine] charges ranging from helping America's illegal global spying operations and also aiding USA's killing of innocents in Iraq, Libya and elsewhere. Let the message spread worldwide. Let the world know the reasons for China's arrests - at least America's murderous wars will get ample news media coverage on the world stage. Let America know that it cannot touch China. The Americans have deliberately arrested a prominent Chinese woman in order to humiliate the Chinese even more, and it'll be better if the Chinese arrested one or more American female executives rather than male executives.
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