Not sure how this is related to your point about money, but I do think it's cultural. To work in the civil service right is not something our current culture rewards and/or admires. As such, you get a paucity of talent, hustle, and hard workers.
We tried tying money to success in our education system with No Child Left Behind and it was a disaster. When you have an organization that is struggling to make effective use of their budget, the solution is to replace the ineffective leadership, not decimate their budget and expect them to do better.
If you ever get bought by a Japanese conglomerate and your boss gets fired, rather than being relieved you should be worried, because you're next if things don't improve. I can't fault that logic, but it does seem to make at least some westerners a little complacent, cross-purposefully.
I'll take shipbuilding, tank manufacture, aircraft construction, and logistics for World War Two, from a prior activity of about nil, as an example of accomplishment.
I doubt we'd be able to do that today at at least the same efficiency.
Except, there's also China with superior morale, superior education and superior efficiency, that might have better plans for the resources left behind a fallen empire...
China also has a huge population problem coming and it’s likely that they have already peaked economically (you’ll notice states like China get much more belligerent and bellicose as they fail ala Russia) and even that is due to government mismanagement.
So, my point is China isn’t some grand strategic master. They are a country with their own problems, likely even worse than most countries because problem exposition is strongly discouraged.
This doesn’t mean that America or any other country doesn’t have problems, but China isn’t particularly special here.
Uh, what?
Which it has largely done, and moves on. Saying it's not resilient enough to handle the situation seems to be wishful thinking in that case (and is obviously false in the case of Tiananmen Square or Tibet.)
Take any amazing organization that does great things, give it a bunch of money, and have the revenue stream not get impacted by failure. You get rot. You get IBM 1960 vs IBM the 2010s - present horror show. You get Ford in 1920 vs Ford in 1980. And this isn't limited to the private sector. It's a feature of massive organizations where revenue is divorced from success.
The US Federal Government is an utter horror show. It was once an amazingly capable collection of efficient, nimble organizations. It could hire rogues and mavericks when needed, and was able to fire the desk-riders too. It's now a rotted-out shell. Success happens in-spite of, and never because-of, the organizations themselves.
I always invite people to go and work with one of the US Fed contractors or agencies. Go look at their job postings. Look at the energy levels of the team members. It's somewhere between a DMV and a mausoleum. Ask yourself if you honestly think they need more money or just far fewer, far higher paid staff with the same or even less budget. Then ask yourself if these organizations are capable of understanding, let alone governing, complex domains.