Trying to tie trade to morality is exactly why Chinese influence is increasing - they are ideologically agnostic when it comes to trade relationships. That's just the new competitive environment we're in. The alternative is withdrawal and decoupling at the cost of hundreds of billions in trade and feel good points for some people at best and a long-term national security concern by pushing Chinese tech independence and future competitiveness at worst. Current administration already wasted that card IMO.
I think your real question is what does the west have to do to contain Chinese ascent which many people think runs counter to Western interests. The answer is I don't know. Though I don't think bilateral trade belligerency helps or individual action in the west. Developing countries are looking to the China model because it looks like it works - conflating the good and the bad with necessary and sufficient. I think western influence would go a long way if they managed to solve the myriad of problems at home and offer and offer an appealing alternative. Other countries aren't stupid, they're look at what works / is working. Too many things in the west is broken right now.