There's another option: Treat them like North Korea. No trade in, no trade out, let them be whatever they want as long as it doesn't hurt anyone outside China.
It's the least profitable option, of course, but much easier to pull off than overthrowing a government armed with nuclear weapons, and un-brainwashing over a billion people.
And we also have to abandon 1.3 billion people in the process. For example, people in North Korea are starving. It's just we don't pay much attention to it. Is this evil necessary?
Can we save them all? We've given North Korea free grain shipments before to help their population, the government just resold it for cash. And we can't topple a government that's willing to use nuclear weapons just to stay in power.
At some point you just have to wait for a better chance. The Soviet bloc was just as unjust and abusive, but before Gorbachev, there was simply no chance of getting rid of it without a hundred million dead in the process. We can only hope that North Korea (or China, hypothetically) appoint benign reformers at some point.
In recent time, there has been more voices in China where notion regarding the West being "brainwashed" by the western media starts the emerge, which had never happened before.
I think it's interesting to note this as it's easy to be one-sided when you are hearing only the narrative and values from a certain belief system. As such without discussing the actual merit of each individual belief, care should be taken perhaps to at least recognize the implicit meaning behind any claims of "brainwash" to ones other than your own.