But what can be done, or perhaps more idealistically, what do you think should be done?
It's tough to think about ideally what
should be done since there's no monolithic party nor a group of parties of sufficient clout and cohesiveness that can "do something" whether that be the international theatre, or even the government of China. Nor is there compelling reason for any of these parties you can think of to do something about China, as China isn't really a threat in the way that would inspire a group of international actors to act in a decisive way and in fact China is probably more so becoming more interdependent on the rest of the world.
If I assume what OPs saying about "dealing with" China as meaning turning China into a Western-style democracy that protects the rights and freedoms of all its citizens and non-aggressive with its dealings abroad, it's only the Chinese people who have the power to make such a thing happen. It'll probably only happen if the people withdraw their support for the Communist Party, which I don't really see happening. Most people in China have witnessed their quality of life improve over multiple generations in succession. The Communist Party has provided outlets for social grievances which look like they're working. The one-child policy was repealed a couple of years back. Major American websites are certainly blocked, but there are local alternatives that have been supported by the Communist Party that have flourished into a relatively isolated self-sustaining social media ecosystem which to be honest is kind of similar to the echo-chambering we see in today's media despite the theoretical increase in connectivity that you thought social media would provide back in 2010. China is developing a social welfare system, as maligned by corruption as it is, in response to the potential for social unrest if they don't. And of the protests that do exist, they strike a careful balance of letting some protests take place whereas shutting down more threatening ones even before they start, all to create an air of business as usual.
As undemocratic as the Communist Party is, they've done a pretty good job of staying in power. They are really good at setting the agenda. Over the year's they've become better and better at becoming seamlessly present in Chinese society. There really isn't anything the government doesn't touch or have some say in, and they try their best to be involved in everything without being explicitly authoritarian. Unless there's a big shock to the system, like a massive recession or international instability, the Communist Party is firmly in the driver's seat in deciding its destiny.
And part of it is the Chinese people too, you can't leave them out of it. Whether or not you think they're just drinking the Kool-aid, Chinese mainlanders have a pretty strong interest in making sure China has an assertive rise in the 21st century. It's like MAGA, except it's not internally oriented, divisive and coming from a place of insecurity, it's outward assertiveness that we're only seeing expressed now as China is becoming legitimately more powerful. If China was as powerful as it is now ten years ago, we would've seen it then. Not much anyone can do about that.