We should be. I think it's inevitable we will engage with the CCP. They have taught their population for the last 70 years their version of manifest destiny- which includes all of SE asia, Nationalist China, and the South China Sea basin. Their non-aggression stance with Russia just increases the likelihood of such conflict- though the Russian should remember that manifest destiny includes Kamchatka and a goodly portion of the former Soviet Far East.
The truly sad part to me is that if it comes to pass, we are mostly to blame- we funded China's growth and killed our own industrial base out of desire for cheap products.