The deeper issue is American business culture.
Everything is reactionary. The focus is always on short term profits. No one cares about long term effects --- until they start impacting short term profits.
This is an inherent vulnerability that is easily exploited by someone willing to engage in some simple, long term planning --- like China has already done with manufacturing.
For decades, the USA gladly shifted manufacturing to China without a second thought. Now, we lack the expertise to make our own and have no choice but to use China.
Replace "manufacturing" with "software" and "China" with "AI" and it's deja vu all over again.