You can't unscramble an egg. Further there's no equitable solution that's going to fit in any post I could type up in under 4 hours and 5000 words, and I don't have that kind of time.
What I do know is acting holier than thou will not sway the Chinese in the slightest. The best policy is to encourage the growth of capitalism. The growth of a middle class will undermine and eventually cause the collapse of communism with time. As long as we do not isolate China and turn her into an enemy and a threat time is on our side and against the communists who control her.
But alas, impatience is the one flaw of democracy. Since our executive perforce changes ever 8 years we as a nation are rarely able to engage in policies that endure over decades. There are only two exceptions I know of - opposition to communism and the Manifest Destiny.
Bringing about democratic reform in China is not a project of months or years. It will take decades and a lot of small steps but it can be done if we have the patience and the will to see it through.