Kinda hard to discuss this without using current politics as an example. Suffice to say, I'm not sure how far anyone could go in pushing a F**K YOU CHINA policy, without making a dog's breakfast out of the international order.
I'm not an economist, and I don't know all the details of China's trade relations with all its partners. But I think it's usually a good bet that when someone says "The only reason we're not getting tougher on Country X is because our leaders lack guts!!", he's talking out of his ass. More likely, it's because those leaders recognize that Country X holds better cards in its hand than the jingoists are willing to admit.
In the present day you are correct, a screw you China policy would mess the global economy up completely and probably backfire on the implementer. Implemented at the end of the Cold War? Totally different story. In 1990 China had a GDP of $400 billion nominal USD, this year they are expecting $15,470 billion, by comparison the US was 5,980 and 22,200, China went from about 8% of US nominal GDP to about 70%, and actually overtaking the US in PPP. China in 1990 was the #9, behind Canada by a hundred billion dollars. Nothing was stopping the US back then from being as tough on China as it wanted
Cutting China off from their OTL export trade would massively slow down their economic growth, it would slow down non Chinese growth, but not by nearly as much, and may benefit some countries by the present day.
How China reacts depends, the Party is likely to clamp down on things rather more than OTL, have to rely even more on ideological/nationalist fervor without the carrot of economic growth. 1997 will be interesting in such a scenario, as Hong Kong has to be returned, but One Country two systems is unlikely in such a scenario, and Western populations won't like handing what they see as a nominal democracy over to an authoritarian regime they are in a confrontation with