China knows Ukraine will never accept China's peace proposal which involves territorial concession. It's just an excuse for China to openly supply weapons to Russia.
I dont think China's peace proposal involves territorial concessions but it involves a process for Ukraine to regain areas like Kherson,Zaporijia with demilitarized zones from its own controlled neighboring areas as well as these two regions closely monitored.
Integration of Donetsk,Luhansk may not be acceptable by Russia currently but if it is made as a timetable like say after 3 years from now if all Minsk accords accomplished by Ukraine in autonomous regions of Zaporijia,Kherson and a referandum of consent-trust of local population of Kherson,Zaporijia is positive then Donetsk may be included into the process as well. After say 2 years from then for every 2 years referandum of consent-trust of local population can be repeated for Ukranian central govt in Donetsk population. I doubt that they will accept it for several more referandums and many years would be necessary as trust will need time to rebuild after the war so Luhansk would possibly be out of the process for a longer time until trust is built with local population of Donetsk towards Ukraine central government. The sanctions would be removed gradually as parts are integrated back so some sanctions would remain as long as Luhansk is waiting to be included in the process. New Russian governments wanting to restart relations with Europe would also be willing to support this issue and as more goodwill is generated it would just be a matter of time for Luhansk to be included in this process.
If there is an open door left for Ukraine to gain territories back they can be convinced and Russia would have security guarantees of the local population as well as demilitarized zones on Ukraine controlled parts(east of Dnieper + right bank of Kherson) and these 4 regions would prevent from another war starting again. Ukraine may opt to station troops in border areas like Sumy,Chernihiv,Kharkiv(its controlled part and border regions only) as retreating completely to the west of Dnieper would give an instant capture option to Russia unacceptable for Ukraine but Ukraine should not station drones-long range weapons in border areas.
Ukraine can say that they gained all their territories back some through battle and some through negotiations by the table and claim sort of victory instead of making more mostly futile surprise attacks and risking nuclear options of Russia. Russia can claim sort of victory as they enforced the Minsk agreement this time with much more control taken seriously by the other parties and in favor of the local population living there and also demilitarised zones east of Dnieper would provide security guarantees for the ethnic Russian regions of Ukraine, for Russia itself and its regions like Crimea preventing the conflict from starting again. Actually both sides are continiously losing a lot but at least a solution and common ground can be achieved to make both sides drop the guns and making them stop losing more from the current situation rewinding back to pre-conflict conditions as much as possible. Guarantors can be the same with Minsk accords and maybe some others as well like China.
Another issue is warzone children that were transported to Russia. Russia claims that children are taken because of security and wartime conditions as wartime conditions diminish from these regions they can be transported back as well (psychological checking of children as well as close monitoring of them would be necessary through a period of time). As most of their parents are dead already they can be assigned to parents from the local population living there with more cultural-ethnical connections with the population like parents may be assigned from Donetsk population. Other options will result in further issues like Ukraine trying to prove that Russia indoctrinated children etc. pressuring these children to claim this and hurt their psychological wellbeing.
Crimea is already integrated to Russia and it is not part of this process. Ukraine can't be forced to recognise it but needs to accept the situation and a non aggression agreement can be made. Just like in Kosovo( other examples like South Sudan also exist. UN sees no excuses for Usa initiated referandums like these) they made a referandum and Crimea chose where it is right now. They can repeat the referandum with independant observers again to settle for the final result to be accepted by all sides. There were referandums made for Crimea before that and this referandum can repeated again with as many observers from Europe and other nations would like the result would be repeated again.