Key difference is that China now has countermeasures to whatever the US is fielding/planning to field and weapons systems the US doesn't have equivalents for on top of the necessary volume manufacture to field en masse and upgrade as needed to boot.IMO, the US's prowess in engines in general is waning by the day. Pretty much the only type of engines they are still ahead in are aeroengines and for military ones the gap is closing by the day while civilian engines might take slightly longer for China to have a full lineup and ecosystem. But in terms of diesel engines and gas turbines China has already closed the gap, latest report on GT25000 now has a similar TBO as LM2500 while CGT30 has similar performance to the LM2500+G4 which is the most powerful variant of the series while the latest Chinese diesel engine(Probably used in the next generation MBT) is in the class of MTU890 which is basically the best there is right now.
IMO we shouldn't underestimate the US, they still have the means of carrying out what they threatened. It's always better to prepare for the worst and find out your enemy was bluffing than assuming they were bluffing, and only later finding out that they were actually serious on the threat.
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It seems like the Advanced Precision Kill Weapons System II (APKWS II) is becoming the US Air Force and Navy go to solution for cheap downing of drones and slow moving cruise missiles. The F-15E Pictured above has 50 APKWS II rockets which gives a single aircraft an incredible intercept capability against swarms of drones and cruise missiles.
Since the base Hyrdra rocket is easy to manufacture this makes for a good platform for cheap drone interception. The only problem is that the current iteration of the APKWS II requires active laser illumination, but they do have a variant with an dual infra-red / active laser guidance package which would make for an excellent drone interceptor.