China's newfound adversarial tone with its neighbors, and with the US and Europe, is more a product of Xi's whim and worldview than it is the product of a deliberative strategic process. Among the failures in China that can be attributed to Xi and his yes men has been the COVID containment strategy - rather than developing state of the art vaccines and embarking on a program of convincing the population to get vaccinated and take other precautions, China was handling COVID through draconian lockdowns months, and even years, after other countries found other ways to contain COVID spread and treat the illnesses it caused. By mid-2022, the Chinese populace was up in arms over the lockdowns, and the vaccine uptake (of a vaccine that wasn't even close to matching the efficacy of mRNA vaccines) was dismal. Xi finally relented, but that episode showed that nobody was willing to challenge Xi's vision, and so he ruled from a bubble.
Democracy is important, not only from a human rights perspective, but it keeps government accountable in important ways. China under Hu Jintao wasn't democratic, obviously, but it's easy to see that his government made more attempts to have its ear to the ground and not get too far beyond public sentiment.
Which is all to say, I'm not optimistic for China's future given Xi's continued poor judgment, and the lack of a functioning ruling committee that could pivot based on data, instead of being beholden to one man's whim.