Failing? No. US innovation has been fine this past decade (or else the Entity List/Tech Bans wouldn't be nearly as salient as they are). That China has innovated faster really isn't a question though. The proclamations that the US is screwed because of this or that, are ofc, nonsense, the US will be powerful at least for decades into the future
I don't think so; this isn't the 60s anymore where anglo american culture was conducive to innovation and producing material goods and results; yes, today's america is open to innovation...of the legal/economic sort to screw people out of their money, where the latest innovation is a protection racket forcing US companies to pay off a group to stop them from saying that they're using "uighur slave labour".
But in terms of raw innovation, China certainly has the US beat; where's the anglo american hypersonic weapons that should have come form superior white anglo innovation?
Where's the 5G that the superior white anglo should have possessed, and not the shitty slapping a 5G sticker on a 4G modem that a US company tried to pull off.
Where's the superior white anglo quantum satellite?
I'm not seeing a lot of US innovation 'being fine', i am seeing a lot of US universities excluding Asians and Chinese from universities simply because they're Asian, and the gestapo of the white anglos conducting witch hunt after witch hunt even when losing in court. None of that screams a culture of innovation or freedom of thought, the sort that should be producing naval railguns which the US Navy does not possess but which the PLAN certainly do, having conducted sea trials.
What i am seeing is a lot of anglo american insecurity in tech; where trump famously said to kissinger he was worried 'about the Chinese getting way ahead of us', where the anglos had to instigate a tech war and chip blockade in an attempt to destroy a Chinese tech company, even going to the extent of kidnaping the CEO's daughter.
Anglo america, effectively the Five Eyes as a world power is doomed because it believes so utterly in its own racial superiority myth that it failed to even entertain the notion that a non white nation could surpass it; Chris Hedges put it best when he described modern america as a white supremacist civilisation doomed to collapse under the contradictions of its own societal iniquities.