If China wants to make a point, it should sanction Immigration and Customs Enforcement (ICE) and/or US Customs and Border Patrol (CBP) in retaliation, since they run concentration camps, lock children up in cages, and separate families, all for a racist motive. This would draw attention to the US's equivalent abuses and point out its hypocrisy.
It is becoming daily, China must respond strongly
But the real question is with what kind of sanction China can hit the USA? restrict rare earths?
If China does not respond, the US will be emboldened and will see this as a sign of weakness.