The US policy towards China and Russia failed so badly because it’s Marxist in nature. Marxism is the belief that economic relations are at the root of everything. The economy is the basis, and everything else is the superstructure, i.e. an outgrowth of the economy.
The US leadership assumed that once China and Russia joined the market economy, they’d adopt the political and social structures that are the most hospitable to the markets. People will see that the material conditions of their lives are improving dramatically and will want to keep living well. So the theory went.
But Marx was wrong. He was right about some things but this central, core idea of Marxism is a mistake. Human beings easily throw away material well-being for other things. Russians don’t give a toss about the collapse of their material existence that they have experienced as a result of waging war. They are happy to sacrifice their material needs to the psychological need to feel insulted, unfairly persecuted, and misunderstood.
The economy is important but other things trump it easily. The US has delivered a deep wound to its own economy by exporting this unworkable theory and losing its manufacturing sector and its security while gaining zero friends internationally.