I had two Yorkies with collapsing trachea, one quite severe.  With my little one, I had to try to keep her from getting too excited or her trachea would start to close and her body temperature would rise.  I always had to act quickly to bring her temperature down and her breathing would then return to normal.  She had problems with it from the time she was young, but it grew steadily worse.  Gracie lived far longer than expected, but she was still only 9.5 years old when she passed away.  The vet technicians told me that her doctor was working on a Chinese herbal formula to help with collapsed trachea, but her vet never recommended it to me.  My girls mostly were prescribed conventional medicine by him because they were difficult to pill, but her doctor is well known for his treatment using Chinese herbs.
 
Ashley passed away right before her seventeenth birthday.  She also had tracheal problems, but they weren't as severe as Gracie's.  She had an enlarged heart as well.  In the fifteen years that I went to my vet's practice, I saw countless animals helped using acupuncture and/or the combination of eastern and western medicine.  I was only 22 miles from his practice, but many people traveled hundreds of miles because they were told by other doctors that he might help them.  I wouldn't have believed it if I hadn't seen it myself.  Ashley responded to the herbs for her trachea, and they helped her.  When it was bad one time, she needed conventional medicine as well.  Chinese herbs definitely helped her enlarged heart along with conventional medicine.  I don't know if they would have helped Gracie or if they will help your little one, but I doubt they will hurt TeddE.  I am so sorry your baby has this terrible disease.  If I can help you in any way, please let me know.   
The article below about my vet and the uplifting five minute video explore the use of both conventional and holistic treatments together.  I am not advocating the use of alternative medicine, but I also don't ever like to give up hope.  
allDAY - The 'Miracle' Vet  Healthcare for furry friends - Bing Videos