Should we become a totalitarian state in order to compete with another? That feels like McCarthyism/Cold War/ “authoritarianism is fine as long as it isn’t communism” vibes.
And there's nothing the US can do. Cutting government spending and starting trade wars with neighbours is not going to stop it. Building up a totalitarian state with deep government influence into businesses is not going to work and will be actively resisted, since Big Government is so against the principles of the current regime's voters - and China has been working on this for decades now. Free market won't work either, as it's already very free in the US itself - but the aggression of US companies in their sales practices, tax dodging, and privacy violations have caused their foreign customers like Europe to raise the defenses.
TL;DR, while I can see how totalitarianism can in theory create a strong economy, it isn't going to fly / work in the US.