I don't think we should expect companies to be moral agents. It's not that they shouldn't be, but more that it's impractical because what's right and wrong (or simply acceptable) depends on who you ask. Furthermore, companies willing to operate immorally have a competitive advantage over those which don't -- if Apple didn't cooperate with authoritarian governments or exploit developing countries for cheap labour they won't stay competitive and a company that does those things will take its place.
The answer IMO has to be regulation. We have to cut off the incentives companies have to act immorally. The problem of course is that this could then make the economy as a whole uncompetitive so politicians are equally unlikely to take action.
Not to be a doomer, but on the issue of China the West has probably waited too long to take action at this point. This would have been easier in the past, but now China has become so dominant, and with Western companies and economies being so dependant on China for labour and manufacturing it's hard to imagine any significant business or political intervention happening.
In fact, this is likely just the beginning, in the future when China is the core market for most multinational companies political intervention basically becomes impossible. No company is going to pull out of their largest market (especially if it's growing faster than the US).