The formerly wealthy western industrial economies cannot compete with Chinas deliberately structured highly competitive mixed economy model. Use all the financial engineering you like, lowering the cost of fiat debt capital since 1990...the structure of your neoliberalised economies is inherently not as competitive as Chinas. The neoliberalised west has squandered its legacy financial advantage by allowing vast sums of fiat debt capital to be issued toward inflating the price of existing assets- mostly real estate- which only created a short term illusion of wealth while depriving the productive sectors of the economy of much needed investment and maintenance. The problem became chronic and self fulfilling because Chinas mixed economy could already demonstrably make things more efficiently and so all the investment in making things went to China. China has deliberately provided state investment in core supply chains that will drive and incentivise the competitive sectors. China directed most fiat debt capital toward productive infrastructure. Electricity drives the modern industrial and post industrial economy and China produces much more of it far cheaper than any other industrialised economy.

This makes Chinas manufacturers more competitive than the wests and so the wests industrial base has been shrinking for several decades.

The west cannot now make most things - certainly not at a competitive price. The USA cannot now fight a war of any size without the supply of rare earths that China controls. The west has lost the trade war and has now lost its military advantage. Game over western civilisation? The Libertarian neoliberals will be determined in their denial of reality...but they cannot credibly refute it.