No need for historical stuff, look at China today like right now.
The high population with oversupply of STEP means everything is more cutthroat there. They have 25% youth unemployment. 996 produces lots of problems but also higher pain threshold. When a new idea comes along they move at lightning speed.
Oversupply of companies in every industry. For example: China mandated companies start producing EVs. Next thing you know there are 100+ car companies in China. All creating jobs that local areas depends on. Now the EV incentives are gone and it has led to extreme price war and everyone fighting for survival in the jungle. What do you think those surviving companies will be like once the weak have been killed off? Imagine them coming after American companies who are fat and bloated and may not know whats coming for them (the employees certainly don't).
This ability to push harder than anyone else is already paying dividends. In 2024, China added 429 GW of new power capacity, more than one-third of the entire US grid. Thats many more factories producing weapons, data centers crunching AI, and lower energy costs enabling more new opportunities.
Now take these people and put them on a war footing? They will out manufacture, out speed and with the amount of STEM they have possibly out wit the US.