I think it's a joke to pretend that China is some ideal to aspire to, but sadly, I think the West will have to use similar tactics to continue to compete.
I believe a big part of China's current strength is by actively exploiting the weaknesses of Capitalism. For a long time, they've exploited the race-to-the-bottom of pricing, and they've gotten rich from it, partially through the sacrifice of their people.
Now that China has that new-found wealth (the country and the people), they are using that wealth to exploit Capitalism in a different way. Since Capitalism is inherently less directed and "top-down", now they're able to manipulate industries by being a big buyer instead. This is inherently part of Capitalism, but since the Chinese government has a more direct control of their economy, they're able to leverage a huge amount of economic power in a more directed fashion.
You want to sell that product here? Well, you're going to have to do it our way. Western governments will have to do the same, putting restrictions on what compromises Western companies are allowed to make, and putting restrictions on Chinese products as well.