The Trump Administration’s China trade strategy has employed blunderbuss tariffs that hurt the U.S. and China. But the policy took a better turn this week with strong but targeted actions to punish alleged theft of U.S. technology.

On Monday the Commerce Department announced restrictions on the export of U.S. technology to Fujian Jinhua Integrated Circuit Co. after America’s Micron Technology Inc. accused the Chinese firm of stealing its intellectual property. State-owned Jinhua is ramping up production of “likely U.S.-origin...