Basically, your saying chickens are home to roost. interesting.
Where does this leave the US-China equation? The US was trying to pull back its manufacturing units from china and Asia even before the covid hit. But they don't seem to be that successful.
Economy in the end is composition valuation of human time/effort. It is valued overall by the ability to create more time (which means more activity i.e productivity). This is what fundamentally drives valuation of all inputs/resources (capital, labour, land etc), currencies (and their trade, both within and among them) are just a medium (that are not controlled perfectly or even well for it).
So the West may compete/pull back + sustainably protect certain high scale manufacturing that is say still IP-dependent (from US/West/Allied East Asia) while growing+protecting what they can with services + soft culture + long term frontier tech expansion etc
But most of the mid tiers and low tiers are lost for good.
It will just take too much cost to move the capital for those (low+obsolete+freeware+rev-engged IP) tiers back to western democracies and operate (by way of labour) them in the high price level environment (i.e high wage, low interest rate) that actually uses the USD/Euro for day to day (unlike China which stockpiles and insulates/ensures Yuan peg by way of T-bond forex etc).
i.e you have to think of the inflation cost (to everyone) vis a vis job creation from doing that. i.e is the labour truly that inelastic and large enough of issue to do that.....versus deploying that money in other things.
What are the actual signals/efficiencies regarding this in free market compared to politicians etc. How does each present the numbers (more importantly which things does each not talk about).
Rather than getting into this (esp for the electorate), it is often far more easier (and possibly more efficient) to create welfare for the bottom segment and simply transfer money from productive parts of economy (and what you can borrow from others with essentially the credibility you built up say over 100 years "coming good" in long run like before).
They (especially US govt + corporate sponsors) have gotten addicted to easy finance/debt for budget deficit mostly initiated systematically after WoT and then 08 economic crisis....to do exactly that and say its sustainable.
It (debt model) is financed by Chinese export surge (an actual hard productivity increase and deployment of scale in last few decades).
Think of long rope growing at X rate at front end, but lit as fuse from back end....and burning at Y rate.
Effectively you want X minus Y to be positive to have a comfortable situation (this was what the economics and neo-liberal policy wonks spouted for the last few decades too predictably).
But if it is negative, you are running out of room (while policy wonks figure out how to manage emperor new clothes situation arriving)....and then it ultimately becomes case of when the burning end starts to heat the shortening rope average temperature to do something different (Trump may very well be equivalent of the boy that said uhhhhh, king has nothing on at end of that story).
These X and Y rates are not guaranteed fixed of course (i.e IP resistance from west now might increase even further from say what we are already seeing in semicon+comms area making Chinese progress into higher tiers far harder.....and also other developing countries by themselves and/or with western assistance start to out-compete on China's own burning "rope" which has its own set of long term issues as you saw in the polymatter series).
So it is hard to model or predict to any absolute way, but this will be the overall story for our lifetimes. Trump (along with pushback against his policy by establishment) is very likely just first of many series of things to come.
But they are definitely like you said chickens of last 30 years coming home to roost one by one.
The raw levers are there (as trump showed+actioned but also failed in deploying in organised, bipartisan and institutional way), but West needs to figure out the fine tuning in this new day and age and scale that up and as soon as possible....they cannot operate on cold war manual anymore. After all they NEVER built up the soviets (or were allowed to, but thats a different subject) like they have done with China. PRC has magnitudes more latent energy (w.r.t tier progression) in it than atrophying (after the basic tiers were unlocked) Soviets did.