Increase funding for education, for one. If our geeks are better than their geeks, in the modern era, that means it is game over. Missile control is a fairly open communication channel.
Shaking one's fist at them and threatening them will only strengthen their resolve. When it comes to the increasing of sanctions, we are already past the point where malnutrition of the populace is a reality. China doesn't want them as refugees.
A military option would kill hundreds of thousands at least and possibly precipitate a world war. What is your option?