The entire trade standoff with China also backfires because the endgame is worse treats.
In 2040, you'll look in Havana, Hanoi, or Hamburg, and they'll have nifty electric cars, solar panels, and have figured out the three trifling tasks AI actually improves once the hype bubble deflates.
Meanwhile, Detroit will be selling a SUV that gets three miles to the gallon and Claude will still be passionately sycophanting to a captive market who can just stare longingly at the rest of the world.