I assume that in the failing of the tech industry brings discomfort like you mentioned will have an impact on society such as strikes, riots, protests. The US will surely hope this gets mirrored to the Chinese society, although i would like the mention that there is a difference between self sabotage and external sabotage, Chinese people are pretty understanding and patient not all are against their government. Most respect and are grateful for what their government has done for the country in the last 30 years,, i would say roughly 80% of them feel this way. This sentiment is beneficial, because it only speeds up recovery from economical disruptions such as this example, housing market is another story.

Another note most of the world understands US's strategy for this type of disruptions used as a weapon, if they can cause civil unrest, the US can use this against the government and it will into the advantage of the US. I would like to note this is not a country of easy convincing, The majority of the seating members of the CCP are deeply interested in their society's interests, then globally second. You have 1.4b people this is not an easy management to handle.

In my eyes best to not compete and work together. There are hard obstacles ahead that are going to need all of our efforts collectively, in Hines-sight this is childish and a waste of time, literally. We made it this far, all of the great achievements and innovations that with out a doubt all have collectively contributed as humans. Climate changes, Populations management, Biological threats, viral threats, pandemic management, genome advancements etc...

Some of the moves that leaders make are simply moving us back in time and when one does something unfavorable to the other it sets the tone for how future engagements and decisions are made, whether silly or not. Indeed no leader is innocent in their decisions, but my point still stands.