China could just not attend and create alternatives. Like Russia has been forced to.
The Olympics is a Western ritual, at the end of the day. Started by the Greeks. The rest of the world was dragged into it by Western dominance during the Age of Colonialism. If, as we believe, that dominance is fading, then so too should the prestige of Western cultural events.
It can be easily sold to the public that the Olympics isn't all that important because of its various controversies and biases, and to sponsor new events in its place. The IOC will then either act to address the issues, or it won't and we'll just stop caring about this Western ritual once every four years. Win win.