Oh really? All of the available evidence would argue that on the contrary, they are merely becoming wealthier communists. And that is a VERY bad thing.
Have you not noticed that as China becomes more prosperous it also becomes more belligerent toward us and the rest of the free world? They are using their economic prosperity to build a blue water navy that can challenge ours around the world, and are otherwise upgrading all facets of their military, including now stealth development. And they have achieved this prosperity by ignoring your advice, and instead being protectionist in the extreme, as well as by manipulating their currency to their advantage.
You see, the problem with "free trade" is that it doesn't really exist. Many of the most powerful players, China chief among them, simply use our enthusiasm for it to manipulate us to their advantage. If truly free markets existed, I might agree with you, but unfortunately they don't on a worldwide scale.
How China and Russia are teaming up to erode American dominance
http://www.telegraph.co.uk/news/worldnews/europe/russia/11600118/How-China-and-Russia-are-teaming-up-to-erode-American-dominance.html
Russian President Vladimir Putin and Chinese President Xi Jinping attend a concert called 'The Roads of Great Victory' in Red Square in Moscow last week
Profits regardless of consequences.