I was focussing on foreign policy and geopolitics, which really hasn't changed much since before the PRC.
For instance their policy in the South China Sea is not something dreamt up by the CCP. The "9-dash line" predates the CCP and the PRC. It dates back to the ROC and as such is still the official policy in Taiwan as well (they keep quiet because they are too weak and don't want to piss off neighbours). What's happened is that China is no longer weak and is now able to reassert itself. In a democratic China it's almost certain that nothing would change in the South China Sea, and that has the full support of the Chinese public.
> Whether this results in closer cooperation with the west
This would not because, as I mentioned, the political regime is a red herring here. The antagonisms are caused by China's growing strength and power. China asserts its interests, which are not aligned with the West's. This is not caused by the CCP, this is the profound geopolitical reality.
What's happening is that a superpower that is not Western (in a general sense of European, Christian culture) is appearing, this is more profound than political regimes, which are actually quite superficial. This has not happened for centuries. People have been conditioned to believe that everyone will align with the West and that being a democracy means aligning with the US, but why would that be? That's just propaganda dating from the Cold War, really.
> it can no longer afford to focus solely on middle/upper-class growth due to the need to appease the majority of the population still living on low wages
They are already doing a lot to "appease" the poorest. Economic growth has benefited them a lot and the government is also doing more to alleviate growing inequalities because they know very well that they have to. They are certainly not focussing on "middle/upper-class growth".