We need to distinguish between the Chinese regime and the Chinese people. I don't see why we could not have free trade for sole proprietorships, worker cooperatives, and consumer-cooperative natural monopolies that that do not sell:
1. Any addictive product or service (such as alcohol, tobacco, gambling, pornography, and sexual services) that does not also serve non-addictive legitimate uses too (such as internet services, financial services, and food, all of which can become addictive in their own right) other than as prescribed by a physician.
2. Weapons other than sports equipment.
3. Potentially morally-controversial products and services.
I do not see why we should not allow totally free trade between businesses in the above category at least.
On the opposite extreme, we might want to totally block trade to state-owned enterprises and Crown corporations. to be fair to China, since it owns more state-owned enterprises than Canada does, we could allow China to block trade to Canadian private businesses that would compete directly with the Chinese state-owned enterprises.
As for all businesses between these, I don't see why we couldn't just negotiate the best possible trade agreement.