This is such a big reason. We no longer identify under a single identity. In America, that would be identifying as an American. In Europe, people still don't really identify as being European before they identify as English, French, German, etc.
Between both America and Europe, we no longer identify with being Western.
The fact that we now increasingly identify with some subgroup, means many of us focus on improving the success of the subgroup with which we align. That means that growing your piece of the pie means growing the size of the pie of your subgroup over growing the size of the pie for the larger group (European, American, Western, etc.)
In China, on the other hand, the focus is on growing the size of the pie for China. It's going to be hard to compete with this unless we adopt the same mindset.