Different countries have different "personalities" and thus will shine in some areas and stink in others. You have to think global to be competitive because you cannot do everything on your own.
The US is mostly an integrator of hardware and technology made abroad, for example. US focuses on cutting edge stuff, and "glues together" the parts from abroad to make it. When a product becomes a commodity, it slips offshore and the US then jumps into the Next Big Thing.
This model may not work for China. For one, they depend much more on personal relationships than contracts. Business relationships in the US are more transnational: easy come, easy go. This is well suited to fast-paced change. China's relationship model may struggle against this approach. But that doesn't mean there are not other niches. Germany and Japan do quite well by focusing on perfecting a niche(s) and less on changing quickly.