> But having the president order arbitrary punishment without proof of guilt (what happened to presumption of innocence?) looks like a dictatorship to me.
It is. There's a faction in the US that believes the US has to have a dictatorship to compete with China.
We've been here before. The USSR looked like an unstoppable juggernaut until the late 1960s / early 1970s. Like China they started from a state of relative backwardness and rapidly industrialized and modernized. The pace seemed incredible until they ran out of stuff to copy.
Totalitarian systems excel at execution, but they are not creative. A vertically integrated totalitarian state will always beat a liberal democracy at "see that? do a whole lot of that!" type challenges. Totalitarianism fails utterly when the leaders are incompetent or deluded, but when the leadership has at least basic competence they can appear formidable... as long as there is a "that" to "do a lot of." When totalitarianism runs out of clear obvious paths forward, it flounders.
Totalitarian systems find it very hard to innovate because innovation is disobedience. It goes against entrenched bureaucratic and monetary interests and sometimes even laws. The latter is why states with a minimalist doctrine of law (some version of "that which is not explicitly forbidden is permitted") tend to do better at innovation.
For a real world example of above: look at how ISPs which are state backed monopolies use the law to push against competitors be they local or municipal broadband or Starlink. In a totalitarian state, those sorts of entrenched interests almost always win. Once something becomes entrenched in the power structure it is immovable and competing with it becomes effectively illegal.
During the Cold War there were always factions in the USA and Western Europe who argued that we must become more like the USSR. The right pushed for more militarization and executive power, while the left pushed for more central management and central planning. They were really pushing for "right" and "left" variants of the same thing: a vertically integrated totalitarian system like the Soviet state.
The same thing is happening now. I think a major reason many at the top of the financial and intelligence world pushed (sometimes covertly) for Trump is as an answer to Xi Jinpeng. There is always a temptation in any conflict or tension to emulate the adversary. It won't work. The real answer is to encourage and protect our ability to innovate while waiting for China to run out of things to copy.
That being said, I am all for cutting China off from easy access to inside knowledge and training. We shouldn't make it easy for the CCP to copy everything. As such I am not opposed to disengagement. We should move production to places like India, Africa, Indonesia, etc. so as not to readily share industrial and technological expertise.
Edit: I mean no racism here. The Chinese can innovate just fine. China under Xinpeng finds it hard to do anything but copy, because it's a dictatorship.