I recommend reading more on this subject. one interesting book is "Destined for War: Can America and China Escape Thucydides's Trap?" by Graham Allison. (Recommended by Joe Biden, and Lloyd Blankfein)
https://www.amazon.com/Destined-War-America-Escape-Thucydide...
But lets address your comment directly: "The level of cognitive dissonance would be off the charts." Is it?
One book I recommend is Graham Allison "Destined for War".
https://www.amazon.com/Destined-War-America-Escape-Thucydide...
One question that specifically stands out from his book - is that the West believes in Universal Human Rights. China obviously does not. This is a point of conflict and we have some very difficult questions to address in the future. Suppose China attacks Taiwan. What if China has a second Tiananmen in Hong Kong? Do we sanction China? What if China responds with more violence? What do we do? Do we go to war? This is an obvious point of conflict. And these are questions that we will have to work out in the future.
From the perspective of an investor, these are also difficult decisions. We can see this in how the NBA has responded, and how South Park has responded - each differently. Is it really wise to Balkanize the world if our goal is to encourage China to adopt Human Rights? How would a second cold war help?
Obviously I don't have the answers. But I can recognize the conflict from the perspective of a VC whose goal is to make money.