Why do the EU and Russia cooperate with China in space whereas the USA does not

It's mainly due to concerns about sharing technology that could also be used for military purposes. Quoting Senator Wolf, who introduced the law prohibiting it:
"We don't want to give them the opportunity to take advantage of our technology, and we have nothing to gain from dealing with them. And frankly, it boils down to a moral issue. ... Would you have a bilateral program with Stalin? [...] China is spying against us, and every U.S. government agency has been hit by cyber-attacks. They are stealing technology from every major U.S. company. They have taken technology from NASA, and they have hit the NSF computers ... You name the company, and the Chinese are trying to get its secrets." http://news.discovery.com/space/denied-n…

Things like this certainly don't help: http://www.dailymail.co.uk/sciencetech/a…

And are you seriously comparing unemployment to imprisoning people for disagreeing with the government?

Because the US and Russia have similar space technology and the US does not fear Russia will steal our technology.

The US is very worried that China will steal space technology that we have and they don't, because that is exactly what they would do.

I think the answer is PARANOIA i mean why not co-operate with the chinese.
Deep down it must boil down to paranoia.

The US does not want to work with a government that after Tienanmen Square shows such disregard for human rights!