People mix up freedom and dicatorship here:
1. Freedom — free markets, minimal regulation Early USA had both political and economic freedom. Modern China has only economic freedom (plus heavy protectionism).
2. Dictatorship of a certain group Modern USA and the Western world have a dictatorship of lawyers, regulators, and ideological enforcement. Communist China has straightforward political dictatorship. As you can see, it's not black and white. China struggled when they had both economic and political dictatorship, but thrived once they introduced economic freedom.
3. It's always a race, freedom of the past is not enough. What the West should do is focus on better planning, less politics, more economic freedom, and a dictatorship of data-driven decisions instead.