For all the flaws and weaknesses of the US manufacturing industry, it should not be underestimated. US is still the 2nd largest manufacturing country in the world, and still has massive advantages in various industries:
- It still probably has the best overall aviation industry in the world, even with all the troubles with Boeing.
- It is by far the leading Space power in the world. Already 120 launches this year, and an average US launch has a higher payload capacity.
- It is still really really good in very high tech stuff. In some industries there is still no US substitute.
- At least historically US was also very good at scaling when it needed to. The number of tanks, ships, and aircrafts that US built during WW2 is mind boggling.
WW2 was a long time ago. US built about 3.8 million tons of ships in the 4 years of WW2. Today, that is about one month of China's ship production. Scales changed.
Whether StarLink is viable long-term is unknown.
Taking a snapshot of today and not looking at the trend line is silly. Today Boeing is still a huge company but if 30% of its China business is gone forever, how much will Boeing shrink? Ditto for companies like Intel, Qualcomm, and Micron.
Typically an infrastructure project takes 15 years to fully realize its economic benefits. The biggest headache for the US is that China is moving too fast these days because of all the infrastructure investments China made in the last 20 years are finally paying tangible dividends. As China has not stopped such investments, situation is only getting worse for the US.