China's soft rule will not be as incompetent.
China has pulled many poor people or of poverty. Generations. You don't see this in media. You're comment is just misinformed and wrong.
1. China overtakes the US -> US society directly decines and thats it. (Your scenario)
2. China overtakes the US -> It takes out the elites with everyone else (what Gen-Z likely wants to see)
3. US manages to hold on -> Elites continue their trajectory of snapping everything up leaving the crumbs for everyone else. (The best case scenario pro-US people can hope for right now)
4. US manages to hold on -> They somehow decide to reform and implement v2.0 of New Deal. (The dream of the bernie sanders wing ie. a pipedream at this point)
You are really showing your age with your attitude.
Put yourself in Gen-Z's shoes. What is realistic at this point? What can even millenials hope for?
The best case is that they end up being a transitional generation that helps their kids survive their childhood and grow into a decent adult life. The worse case is managed decline.
Either way Gen Y and Gen Z are done for. This amazing American system you defend has ruined these generations long term outlooks and Trump's bumbling has already written their final chapters.