China needs a new political system before we can talk about anyone being their allies. The CCP have made it clear they are only interested in total power.

How likely is that to happen?

More likely than it seems imo. Seeing the huge amount of discontent and dissent during the initial covid outbreak in Wuhan points towards the system being very fragile with no pressure release (such as democratic elections) in place. This can only go on so long before it implodes.

They could be more easy going without actually dropping the CCP. Vietnam for example is being quite easy going in spite of still having their communist party.

I have nothing against Communist parties (though I disagree with any philosophy that requires authoritarianism to enforce it, I still believe that Communists become Communists mostly with good intentions) and I agree they could evolve but the CCP has a culture problem. They are currently incapable of changing this from within through negotiation and are instead doubling down on it (see Xi's President for life vote for example). Any change in the CCP will come from within but if it happens in the next decade I can't see it being an evolution.

All the lives lost across the world to COVID and the economic impact of the previous year has demonstrated that "make peace" with CCP is not a good idea. I am, by no means, advocating war. But the rest of the world has to take measures to ensure bidirectional access to information. Here's what I am advocating: If a country wants free flow of goods, people, and money, there has to be free flow of information too. If it means curbing economic activities in hostile governments, while the decision must not be taken lightly, it needs to be taken sometimes.

Strawman. Not interested.