I don't imagine it will happen in my lifetime, but I think there will be a time where China will want the rest of the world to understand them more than they want to block off the rest of the world. It's easy to think about government regimes in a polarised fashion - western democratic model: good, insular communist model: bad. In truth there is plenty of corruption to go around. Those in power find ways to stay in power for the long haul -- this is something all cultures share. The difference is how they do it.
As you say, the internet changes the world and I believe that it will create opportunities that even the most insular governments will not be able to pass up. It will take decades, but I think that it must happen. Our task in the meantime is to ensure that the internet stays functional. Things like strong encryption is vital. Probably net neutrality is a close second. Even in more open cultures, there are powerful forces trying to limit what the internet can be. As long as we can keep it unfettered in one place, I believe the benefits it brings will eventually draw everybody in. As such, my (unasked for) advice is not to worry too much about what China is doing and to concentrate on keeping the internet free where you are.
> > Our task in the meantime is to ensure that the internet stays functional ...
I'd add end-user control to your list, as archaic as that might sound these days. Centralized systems provide a single point of political pressure and of failure.
