1. Sanctioning bad actors: Placing wide ranging economic sanctions on bad actors is a potent tool but it can backfire. U.S can penalize any company that does business with sanctioned individuals. In the case of China, applying sanctions on party members would make it virtually impossible for them to transfer their wealth overseas via global banks, property markets, investment vehicles, etc. This ratchets up the pressure on the Chinese government as it immediately and adversely affects the interests of China’s powerful elite. The downside of this approach is that China is likely to retaliate against U.S. economic interests within China. It’s a large market coveted by many U.S. companies, so there is likely to be political blowback, which makes this unlikely to happen.

2. Diplomatic pressure to isolate China: China cares deeply about how it’s perceived on the world stage. We rarely hear strong international condemnation of China’s social, political or economic policies. This is partly due to the China’s success in using their economic power to strengthen their global standing. Much has been written about China’s debt diplomacy, for example. China now plays an outsized role in organizations like the WHO and various UN bodies. It’s even a member of the UN human rights council. The U.S. on the other hand has been withdrawing from these bodies, effectively ceding the stage to China. The U.S could apply pressure on China by once again assuming its leadership position within these bodies, and working with allies to counter Chinese influence and condemn China’s internal and external policies. China has no effective response to this tactic and it’s therefore one that they are particularly concerned about IMO.

3. Stronger military and economic alliances with Taiwan, India, Japan and Australia would create a counter balance to rising Chinese dominance in the region.

4. The U.S can also take steps to prevent knowledge transfer to China by limiting foreign student intake, or preventing research collaboration with Chinese universities.

Sovereign nations have always reserved the right to decide what is allowed on their shores. That they disallow an entity from operating on their shores does not mean that they have "become China".