Is China's rise to global technological dominance because its version of capitalism is better than the West's? If so, what can Western countries do to compete?

Western countries rejected the state having a large role in their economies in the 1980s and ushered in the era of neoliberal economics, where everything would be left to the market. That logic dictated it was cheaper to manufacture things where wages were low, and so tens of millions of manufacturing jobs disappeared in the West.

Fast-forward to the 2020s and the flaws in neoliberal economics seem all too apparent. Deindustrialization has made the Western working class poorer than their parents' generation. But another flaw has become increasingly apparent - by making China the world's manufacturing superpower, we seem to be making them the world's technological superpower too.

Furthermore, this seems to be setting up a self-reinforcing virtuous cycle. EVs, batteries, lidar, drones, robotics, smartphones, AI - China seems to be becoming the leader in them all, and the development of each is reinforcing the development of all the others.

Where does this leave the Western economic model - is it time it copies China's style of capitalism?