So, how do you argue with somebody who always says that even an unregulated economy can't compete with China because of the government's dumping/monetary manipulation policies?
Then China does not need to be competed with. It means it's already providing the most cost-effective solution for its customers. They're practically giving something for free, at least partially.
However if you find your business failing because of that, you could just cut your production and buy what China's selling. When they run out of "energy" (which they'll eventually do) or simply believe they drove you off the market, you begin selling those products, getting better profits than if the dumping did not occur.
In general, every successful company on a free market should be able to adjust its production quickly. There's no state to subsidize you and/or to regulate work contracts.