US losing the war to China?

This article in the NY Times is well worth a read. The article is focused on the Chinese efforts to improve its standing in the world, much like the US did during the Cold War. I am amazed that a country such as China is able to out market the US and they are. I see it all of the time in Europe, where the general consensus is that China is the future. Since the Cold War, US politicians from both parties have ended the "product USA" campaign and surely that has contributed to our decline in status globally and in the Middle East specifically.

Sure, the US has plenty of faults and our current government is unappealing outside of the Red States but look at China. I have spent enough time visiting neighboring countries to know just how invasive they are and we are all aware of their crimes in Tibet as well as their human rights record that makes Texas look liberal. I don't subscribe to the "China is the future" theories but how the hell are we losing mindshare to the Chinese government? Talk about international failures.