The foundational failing I see in my countrymen is the notion that China can't innovate. Their economic reliance on exports is not untrue. Just like their reliance on energy imports is a fact (though one that we are seeing right now become more questionable.)
The average American will keep shouting over and over again that "China can't innovate" while they quietly and slowly tick off every box on their checklist of issues. It doesn't end well for us.