My chinese elm tree lost all its leaves, remained alive, then sprouted at the base of the trunk.. I let it grow, researched online but could not find anything to help me learn what to do. Today I cut the trunk of the tree to about three inches above the new sprout which is about 8 inches tall now. Any advice?

In spring trim it flush with the highest living branch. Make sure it is nice ans smoot transition, with living bark all around the cut. Cover the area with cut paste and let the plant grow without trimming for it to start growing over the cut area.