Given their focus on technology and modernization and massive investment in R&D and STEM education, it is likely that China will grow further still. China’s R&D investment is now at the top of the world about on par with the US. There are also a very high number of capable engineers in China as suggested by PISA results.

A key difference with middle income countries that only earn export income as manufacturing base is that there are quite a few Chinese companies that possess its own technology and brands. DJI, Oppo, Xiaomi are some examples. Many of these brands are not well known in the US but have become increasingly competitive with global brands, at least in some respect, in Asia and perhaps elsewhere.

It might make sense to compare them to Korean brands a while back, with an additional advantage of massive domestic market.

Their forward-looking focus on major industries of tomorrow like AI, EV, and biotech does not hurt either.

https://en.wikipedia.org/wiki/List_of_countries_by_research_...

https://news.ycombinator.com/item?id=21868570

https://news.ycombinator.com/item?id=21692002

Since there are many areas in China that could be further developed, the service sector will also likely grow.

My point is that the US ought not get complacent and believe in wishful thinking that competition from China will simply go away in time.