That premise is no more valid today with China than it was at the height of Japan-takes-over-the-world mania.
Japan via Sony accumulated a large ownership position in US music. Sony acquired Columbia Pictures in 1989 for $3.4 billion, a huge deal at the time. Nintendo and Sega took over US video gaming from Atari. What did it mean? Nothing as it turns out.
I don't think it will go the way it did with Japan.
Inflation adjusted their GDP was nearly as large in 1995 as China's is today. They did that with 1/11th the population. China will never accomplish something that dramatic economically.
Japan held a lot more influence over the US at the time precisely because we were allies. China will never be allowed to acquire large numbers of important US companies (and vice versa), because we're unlikely to ever be allies. Japan's holdings of the US national debt back then as a % were also far greater than China's position is today.
In 1991, it was Japanese billionaires dominating the global richest 50 list. Taikichiro Mori and Yoshiaki Tsutsumi were the two richest people in the world, at $15b and $14b. That's nothing like what is occurring today, American billionaires are dominant.
In the late 1980s and early 1990s, it was the Japanese corporate giants that ruled the global economy. Today it's American corporate giants by a large margin. China's giants mostly can't leave their own borders and never will. The regressive command economy straight-jacket - mixed with political doctrine-based restraints - that their companies are permanently ruled by, won't allow it.
China's leverage today is not orders of magnitude greater than Japan at its economic peak. Asia as an example was far poorer across the board in 1985-1995 than it is today, Japan towered over Asia economically in a way China never will. In 1985, South Korea's GDP per capita was 20% that of Japan; China was 2.5% that of Japan; and so on.
"China will never accomplish something that dramatic economically."
What China's accomplished in reducing extreme poverty, given their starting point under the Mao regime, is nothing short of miraculous. It has far wider reaching lessons for developing countries than Japan's post-war boom does.
"China's giants mostly can't leave their own borders and never will. The regressive command economy straight-jacket..."
When you have a billion + people, it makes sense to focus on that market first. Anyway, the US wouldn't be warning partners about Huawei if their equipment wasn't a key part of most nations' telecom infrastructure already.
Maybe rather than complaining about it, we should actually build things?
Maybe we should pay a schoolteacher more than 1/4 what an advertising optimizer makes?
We sell everything to the highest bidder, buy from the cheapest supplier, but then when it's a Chinese company investing it's suddenly a cultural crisis?
If a German company was buying part of Reddit, would it be the same cultural crisis?