This pattern has worked in both South Korea and Taiwan, so the assumption was made that the Chinese would similarly move to democracy as their people flourished. This proved to be incorrect, but it's not fair to blame one party for this; everyone assumed it.
The crucial shift was their admission to the World Trade Organisation in about 2000 - which gave them largely unfettered access to Western markets. They have played the game amazingly well - in practice stealing tech from joint enterprises as well as more literally. But they have also become the workshop of the world, massively damaging western industry as a result.
The consensus view of the establishment is now that China is a major threat. But this has taken a long time to sink in, and there are relatively few easy ways to put pressure on the CCP. The most we can hope for is that the growing issues such as a massive numerical imbalance of young men and young women, as well growing youth unemployment will lead to a collapse. But that's not a happy thought.