US, Japan, Aussie, EU, UK, Korea, India, Canada, Taiwan etc. literally need to form a 'China Issue Council' to inform, share info and be consistent with all such issues across media, intelligence, trade, foreign affairs etc..
Either we acknowledge Taiwan, or expect that it will become like Hong Kong. Probably recognizing the relative autonomy of Hong Kong and Tibet would be a good first step.
China will not go to war over it 'today' so harbour a fleet there in Taiwan, put some airbases nearby, run some heavy patrols and then 'recognize' Taiwan publicly.
What can China do at that point? It can't do anything militarily.
Importantly, it's still an export-based economy, and though no single export market (not even the US) is super critical - major markets together are, as are certain key parts.
Since they've transgressed all sorts of WTO rules, they should be removed from the WTO.
Since they lied about the pandemic and more importantly, will not allow an open investigation into the roots of the pandemic that has obliterated the world economy and killed millions of people - they should definitely be removed from the WHO.
Any interference into media culture of politics in outside nations has to be confronted: they're actively bullying students on campuses in North America (especially in Canada), that definitely stopped.
The new 'group' should set up an few outposts in the S. China Sea with naval patrols to ensure the continued freedom of navigation in the area.
Supporting the industrialization SE Asia (aka Philippines, Vietnam, Malaysia, India) so as to be able to remove dependency on 'one source' for labor.
Etc. Etc..