The west did need to adapt and adapted partially by importing Japanese production methods such as lean manufacturing. As Andy Grove said, “Only the paranoid survive”

US destoyed Japan & global economies to solve that problem. And the sources of those problems all moved to China, which was almost a failed state. That's how China problem today have come to be.

Russia is now probably in the state similar to circa 1980 China. In case The China Problem were to be Solved like how previous one was solved, perhaps militarily this time, that'll just launch the seeds of the same problem over the borders to there. OTOH we'll be watching Russian homage to Chinese recreations of Japanese interpretations of Disney animations by 2060s and that will be awesome.

Will the US become its own 1980 China or 1950 Japan, just to get onto the ladder back up to be 2020 China or 1990 Japan, finally building the California HSR owned by DOT? Is it playing a genius 4D Chess ... whatever ... move towards that? Maybe, I don't know. All I know is that it's not like people simply stopped being too alarmist with Japanese global takeover scare and it just went away naturally.