As an American business owner, do you believe in the rule of law or the rule by law? Do you think any appearance of shifting to the latter would have an impact on the business environment?

If I understand your argument correctly, my response is the same, that the "of law" or "by law" has no bearing and never has.

People/organizations/governments will do what they have the leverage and power to get away with. If you, or your organization, or your government, don't/doesn't agree with the direction, then leverage and power are your means to change the situation. Those that have the power to make/change the laws, make/change laws.