Outside competition allows progress because we have been shown time and time again that the US will just not solve its problems without outside pressure. I'd also argue that any other country in its position would act the same. For example when the USSR was actively competing with the US, they could easily lob a major criticism of the US in capturing 'hearts and minds' of other nations: "Look at how they treat their minorities. Do you really want to work with those people?"

Yes there were very active causes and groups in the US to correct this issue, but that outside pressure forced leadership to be nudged towards corrective action and I wonder if the USSR hadn't been there would we have gotten Civil Rights legislation passed when we did?

Maybe the same will happen with China showing the US how fast they can get stuff done and what they provide as benefits to their citizens vs a declining US. Already TikTok has helped Gen-Z realize how Israel gets so many benefits (universal healthcare, college tuition, benefits for birthing kids etc.) while the US is in massive debt and continues to send money to Israel. That continued propaganda may lead to an eventual backlash and subsequent reform.