Any big grouping can compete if there’s enough will. Look at how eg Russia has rejigged much of its war machine during the Ukraine war. Look at how Ukraine has turned themselves inside out to compete. At some level of pressure, countries transform. How much will it take? Is simple economic pressure enough? Can eg Europe gather enough of its massive educated population to transform?
In economic competition, as with poker, if you don’t know who the sucker is…you’re it. China has been making suckers of many countries and they are slowly waking up.