This places you squarely at odds with the principal current-day advocates for free trade that the Administration has explicitly relied upon, such as Thomas Friedman, and Thomas PM Barnett. They have expounded that very point...which you have demonstrated a more pronounced degree of common sense on than they have!
I agree. I am an admirer of Barnett, but he is wrong to go with the "trade fixes everything" ideal.
Certainly trade is a huge spur to reform and democratization, but it cannot do so by itself. That is why I disagree that we should just mollify China until our trade with them "fixes" things. They are a GREAT danger to us and that danger will come to a head long before trade will "fix" their society.