We should sell arms to the Republic of China (Taiwan), the legitimate government of China, and cut off our trade with Red China. Thei economy would fall apart faster than you could say "Mao Tse-tung" and they wouldn't be in a position to threaten anyone.
We have passed the point of no return - our economy is so tied into China's economy that we would have an economic collapse if we broke with China.
Right now we needn't play all of our cards. China may end up playing ball with us, anyway. She's at war with radical Islamists in her remote Xinjiang province, after all, much as we are in Afghanistan.
But if she goes the other way by turning hostile against Taiwan, we may choose to play a little bit rougher.
It is getting somewhat past the era of old Red China. It's just China now. There are still some old ChiComs around, too. If we cut off trade, we would damage our own economy as well. It's not so simple.